USD/CNH: Downward momentum has not increased significantly – UOB Group
There is a chance for US Dollar (USD) to test 7.1650 vs Chinese Yuan (CNH); the major support at 7.1500 is unlikely to come into view. In the longer run, downward momentum has not increased significantly, but bias for USD is on the downside toward 7.1500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Bias for USD is on the downside toward 7.1500
24-HOUR VIEW: "Contrary to our expectation of range trading, USD fell last Friday, closing down by 0.46% at 7.1720. The decline appears to be overdone, but there is a chance for USD to test 7.1650 before stabilisation is likely. The major support at 7.1500 is unlikely to come into view. Resistance levels are at 7.1870 and 7.1980."
1-3 WEEKS VIEW: "In our latest narrative from last Tuesday, 20 May, when USD was at 7.2160, we noted that the recent 'downward momentum has largely faded, and instead of weakening, USD is likely to trade in a 7.1850/7.2450 range for now.' After trading in a range for a few days, USD fell below 7.1850 last Friday (low of 7.1717). Despite the decline, downward momentum has not increased significantly. That said, as long as 7.2070 (‘strong resistance’ level) is not breached, the bias for USD is on the downside toward 7.1500."
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