USD/CNH: Can reach 7.1330 short term – UOB Group
|The US Dollar (USD) is likely to trade in a range between 7.0990 and 7.1330. In the longer run, momentum is slowing; a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
After breaking below 7.0900 USD to stop going up
24-HOUR VIEW: “Our view for USD to trade in a range between 7.1180 and 7.1480 last Friday was incorrect. Instead of trading in a range, USD dropped to a low of 7.1096, closing at 7.1159 (-0.29%). Despite the decline, there has been no clear increase in downward momentum. Today, we continue to expect USD to trade in a range, probably between 7.0990 and 7.1330.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Wednesday (16 Oct, spot at 7.1350), wherein the recent strong and sudden surge suggests further USD strength to 7.1600, potentially 7.1900. We added, ‘To keep the momentum going, USD must not break below the ‘strong support’ level, now at 7.0900.’ After the strong rise, USD has not been able to build on its gain. Momentum is beginning to slow, and a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.