FX Strategists at UOB Group noted USD/CNH is seen losing further momentum if 7.0350 is cleared.
Key Quotes
24-hour view: “USD traded between 7.0490 and 7.0618 yesterday, a much narrower range than our expected 7.0350/7.0650. The quiet price action offers no fresh clues and USD is likely to continue and trade sideways for now. Expected range for today, 7.0460/7.0650.”
Next 1-3 weeks: “In our latest update from last Wednesday (08 Apr, spot at 7.0720), we held the view that “last month’s 7.1652 high could remain as a top for a while more; risk for USD has shifted to the downside towards 7.0350”. USD subsequently dropped to 7.0370 last Friday. While reaching oversold, the outlook for USD is still weak. That said, 7.0350 is a solid support and USD to close below this level before further weakness towards the next support at 7.0100 can be expected. Overall, USD has to move back above 7.0820 in order to indicate that the current downward pressure has eased.”
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