USD/CNH faces strong resistance at 7.1652 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted the outlook on USD/CNH remains constructive with a tough hurdle in the 7.1652 level.

Key Quotes

24-hour view: “After soaring to a high of 7.1645 last Friday (22 May), USD traded in a quiet manner between 7.1470 and 7.1580 yesterday (25 May). Upward momentum has eased and the current movement is viewed as the early stages of a correction phase. In other words, USD is expected to trade sideways to slightly lower today, likely between 7.1280 and 7.1500.”

Next 1-3 weeks: “We highlighted last Friday (22 May, spot at 7.1290) that the outlook for USD “is mildly positive”. We added, “the year-to-date high at 7.1652 is a formidable resistance” and only a daily closing above this level would ‘confirm’ a break-out. USD subsequently soared to 7.1642 before easing off. For now, there is no change in our view and only a break of 7.1100 (‘strong support’ level previously at 7.0800) would indicate the current upward pressure has eased.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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