USD/CNH: Major resistance at 7.2980 is unlikely to come into view – UOB Group
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US Dollar (USD) could rise to 7.2880 before levelling off; the major resistance at 7.2980 is unlikely to come into view. In the longer run, upward momentum has slowed; a breach of 7.2500 would indicate that USD has moved into a range trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Upward momentum has slowed
24-HOUR VIEW: "USD dropped briefly to 7.2532 two days ago and then rebounded. Yesterday, we noted that 'the decline did not lead to a clear increase in downward momentum.' We expected USD to 'trade in a 7.2550/7.2750 range.' However, instead of trading in a range, USD rose to 7.2842, closing at 7.2814 (+0.22%). Upward momentum has increased, albeit not much. Today, USD could rise to 7.2880 before levelling off. The major resistance at 7.2980 is unlikely to come into view. Support levels are at 7.2750 and 7.2640."
1-3 WEEKS VIEW: "Our update from yesterday (01 Apr, spot at 7.2640) remains valid. As highlighted, although upward momentum has slowed, only a breach of 7.2500 (no change in ‘strong support’ level) would indicate that USD has moved into a range trading phase. As long as USD is not breached, there is a chance for USD to rise to 7.2980."
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