US Dollar (USD) is likely to trade in a range of 7.1590/7.1780 against CNH (Chinese Yuan). In the longer run, there has been a tentative buildup in momentum; USD is likely to edge lower toward 7.1450, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
A tentative buildup in momentum
24-HOUR VIEW: “Last Friday, we expected USD to ‘trade in a range of 7.1570/7.1770.’ USD then traded between 7.1624 and 7.1752, closing modestly higher at 7.1720 (+0.10%). The price action provides no fresh clues, and today, we expect USD to trade in a range of 7.1590/7.1780.”
1-3 WEEKS VIEW: “Last Wednesday (25 Jun, spot at 7.1680), we highlighted that ‘there has been a tentative buildup in momentum, and USD is likely to edge lower to 7.1450.’ While USD subsequently dipped to a low of 7.1527, there has been no significant increase in downward momentum. That said, we will maintain our view for now, as long as the ‘strong resistance’ at 7.1950 (level remains unchanged) is not breached.”
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