USD/CNH: To trade in a range between 7.1180 and 7.1440 – UOB Group
|The US Dollar (USD) is expected to trade in a range between 7.1180 and 7.1440. 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 FX analysts Quek Ser Leang and Lee Sue Ann note.
USD/CNH momentum is slowing
24-HOUR VIEW: “Our view for USD to ‘rise to 7.1500’ did not materialise, as it pulled back from a high of 7.1462, closing largely unchanged at 7.1350 (- 0.02%). The current price movements are likely part of a range trading phase. Today, we expect USD to trade between 7.1180 and 7.1440.”
1-3 WEEKS VIEW: “Our update from Monday (21 Oct, spot at 7.1170) remains valid. As highlighted, the recent buildup in momentum is slowing, and a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further. Looking ahead, USD has to break and remain above 7.1500 before an advance to 7.1600 can be expected.”
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