USD/CNH: Potential for USD to rise to 7.3250 – UOB Group
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US Dollar (USD) is likely to trade in a range between 7.2780 and 7.3010. In the longer run, strong advance indicates there is potential for USD to rise to 7.3250, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD is set to rise to 7.3250
24-HOUR VIEW: "USD rose sharply last Thursday. On Friday, we highlighted that 'conditions are deeply overbought, but provided that 7.2770 is not breached, USD could test 7.3100.' Our expectations did not materialise, as USD traded in a 7.2848/7.3015 range, closing largely unchanged at 7.2957 (-0.07%). The current price movements are likely part of a range trading phase. Today, we expect USD to trade between 7.2780 and 7.3010."
1-3 WEEKS VIEW: "We continue to hold the same view as last Friday (28 Feb, spot at 7.2950). As highlighted, the strong advance from last Thursday 'indicates there is potential for USD to rise to 7.3250.' We will maintain the same view as long as 7.2600 (no change in ‘strong support’ level) is intact."
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