USD/CNH: To trade between 7.2400 and 7.2900 – UOB Group
|US Dollar (USD) could test the 7.2400 level before a more sustained rebound is likely. In the longer run, current price movements are likely part of range trading, probably between 7.2400 and 7.2900, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Current price movements are likely part of range trading
24-HOUR VIEW: “We noted yesterday that USD ‘is under mild downward pressure and could edge lower to 7.2540.’ However, we were of the view that ‘the major support at 7.2400 is unlikely to be tested.’ USD subsequently fell more than expected to 7.2420 before rebounding to close at 7.2609, lower by 0.10%. There has been a slight increase in momentum. Today, USD could test the 7.2400 level before a more sustained rebound is likely. A sustained break below 7.2400 appears unlikely. On the upside, should USD break above 7.2750 (minor resistance is at 7.2660), it would suggest that USD is not weakening further.”
1-3 WEEKS VIEW: “Current price movements are likely part of range trading, probably between 7.2400 and 7.2900. Our most recent narrative was from last Friday (06 Dec, spot at 7.2660), wherein ‘the current price movements are likely part of range trading, probably between 7.2400 and 7.2900.’ Yesterday, USD dropped to a low of 7.2420 before rebounding. The slight increase in momentum is not enough to indicate a sustained decline. Looking ahead, if USD were to break clearly below 7.2400, it could trigger further decline to 7.2200.”
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.