In opinion of FX Strategists at UOB Group, prospects for USD/CNH to visit the 7.1700 region appear to have lost traction as of late.
Key Quotes
24-hour view: “Our expectation for USD to ‘dip towards 7.0650’ was wrong as it rose to 7.1333 before ending the day on a firm note at 7.1227 (+0.41%). Upward momentum has picked up and from here, USD is expected to extend its advance but last month’s peak at 7.1652 is likely out of reach. Support is at 7.1000 followed by 7.0800.”
Next 1-3 weeks: “As highlighted, the chance for USD to break above 7.1700 has diminished. However, only a breach of 7.0450 (‘strong support’ level previously at 7.0350) would indicate that the current upward pressure has eased. Looking ahead, a break of 7.0450 would suggest USD could spend trade in a broad range for a period.”
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