Outlook is combined; US Greenback (USD) is prone to commerce in a 7.1900/7.2300 vary towards Chinese language Yuan (CNH). Within the longer run, USD may range-trade for just a few days earlier than resuming its decline; the extent to look at is at 7.1700, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
USD can range-trade for just a few days
24-HOUR VIEW: “USD fell to a low of seven.1846 on Monday after which rebounded. Yesterday, we identified that ‘the rebound amid obvious constructive divergence suggests there may be room for USD to rise additional to 7.2400.’ USD subsequently rose however solely reached 7.2351, retreating sharply from the excessive. The worth motion has resulted in a combined outlook. In the present day, we anticipate USD to commerce in a 7.1900/7.2300 vary.”
1-3 WEEKS VIEW: “We proceed to carry the identical view as yesterday (06 Might, spot at 7.2150). As highlighted, ‘though an extra decline stays attainable, the deeply oversold short-term circumstances counsel that the USD might range-trade for just a few days earlier than resuming its decline.’ The extent to look at is at 7.1700. Total, solely a breach of seven.2600 (‘sturdy resistance’ stage was at 7.2800 yesterday) would imply that USD is just not declining additional.”
