USD/CNH: Trades towards 7.2980– UOB Group
|The US Dollar (USD) is likely to edge higher. As upward momentum is not strong; any advance is unlikely to reach 7.2980. USD is still trading in a 7.2600/7.3100 range, UOB Group FX strategists Quek Ser Leang and Peter Chia note.
Rangebound within 7.2600/7.3100
24-HOUR VIEW: “We expected USD to trade in 7.2682/7.2880 range last Friday. USD then traded between 7.2763 and 7.2895, closing at 7.2867 (+0.11%). There has been a slight increase in momentum. Today, USD is likely to edge higher. As upward momentum is not strong, any advance is unlikely to reach 7.2980. Support is at 7.2770, followed by 7.2700.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (18 Jul, spot at 7.2680), wherein ‘downward momentum is building again, but USD must break and stay below 7.2600 before a decline to 7.2400 can be expected.’ We indicated that ‘the chance of USD breaking clearly below 7.2600 will remain intact provided that 7.2900 is not breached.’ On Friday, USD rose, reaching a high of 7.2895. While our ‘strong resistance’ of 7.2900 has not been clearly breached yet, the buildup in momentum has largely faded. From here, it appears that USD is still trading in a 7.2600/7.3100 range.”
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.