US Greenback (USD) is prone to commerce in a spread of seven.1530/7.1730 towards Chinese language Yuan (CNH). Within the longer run, downward momentum is waning quickly; a transparent break above 7.1730 would point out that 7.1295 shouldn’t be coming into view, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Downward momentum is waning quickly
24-HOUR VIEW: “We anticipated USD to ‘commerce in a spread between 7.1440 and seven.1630’ final Friday. We have been incorrect, as USD rose to a excessive of seven.1706 after which closed at 7.1686 (+0.19%). Regardless of advancing, USD has not gained a lot momentum. Immediately, we proceed to count on vary buying and selling, albeit in a better vary of seven.1530/7.1730.”
1-3 WEEKS VIEW: “In our newest narrative from final Thursday (24 Jul, spot at 7.1500), we indicated that USD ‘might drop to 7.1295.’ USD then dropped to 7.1435 earlier than rebounding. On Friday, it reached a excessive of seven.1706. Downward momentum is waning quickly, and a transparent break above 7.1730 (no change in ‘robust resistance’ stage) would imply that 7.1295 shouldn’t be coming into view.”
