USD/CNH: Bias is on the downside while below 7.2910 – UOB Group

Jul 12, 2024 8:43 AM

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The US Dollar (USD) could test 7.2550 first before stabilisation is likely; the next support at 7.2400 is unlikely to come under threat, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

USD to trade lower towards 7.2400

24-HOUR VIEW: “We did not anticipate USD to drop sharply yesterday, as it closed lower by 0.34% (7.2673). While the sharp drop appears to be overdone, USD could test 7.2550 first before stabilisation is likely. The next support at 7.2400 is unlikely to come under threat. Resistance is at 7.2750; a breach of 7.2800 would mean that the weakness has stabilised.”

1-3 WEEKS VIEW: “We have expected USD to trade between 7.2700 and 7.3100 since last Thursday (04 Jul, spot at 7.3000). After trading in a quiet manner for a few days, USD plummeted and dropped to a low of 7.2584 yesterday. Downward momentum is building, and USD is likely to trade with a downward bias towards 7.2400. The downward bias is intact as long as USD remains below 7.2910.”

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