US Greenback (USD) is anticipated to proceed to rise in opposition to Chinese language Yuan (CNH); the most important resistance at 7.1910 might be out of attain for now. Within the longer run, upward momentum is constructing, however for a continued advance, USD should first shut above 7.1910, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Upward momentum is constructing
24-HOUR VIEW: “Our expectation for USD to ‘commerce in a spread of seven.1530/7.1730’ yesterday turned out to be incorrect. As a substitute of buying and selling in a spread, USD rose and reached a excessive of seven.1830, closing on a agency be aware at 7.1815 (+0.18%). Whereas we anticipate USD to proceed to rise, overbought situations point out that the most important resistance at 7.1910 might be out of attain for now. Help ranges are at 7.1750 and seven.1700.”
1-3 WEEKS VIEW: “After holding a adverse USD view for a number of days, we famous yesterday (28 Jul, spot at 7.1650) that ‘downward momentum is waning quickly, and a transparent break above 7.1730 (‘robust resistance’ degree) would imply that 7.1295 shouldn’t be coming into view.’ That mentioned, we didn’t anticipate USD to rise to a excessive of seven.1830. Downward momentum has waned. Upward momentum is constructing, however for a continued advance, USD should first shut above 7.1910. The chance of USD closing above 7.1910 will enhance within the coming days so long as it holds above 7.1660.”
