As a substitute of continuous to rally, US Greenback (USD) is extra more likely to consolidate between 7.1920 and seven.2150 in opposition to Chinese language Yuan (CNH). Within the longer run, sharp rally seems extreme, however there’s a likelihood for USD to rise additional to 7.2250, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Likelihood for USD to rise additional to 7.2250
24-HOUR VIEW: “We anticipated USD to ‘commerce in a variety of seven.1700/7.1835’ yesterday. The next value actions didn’t prove as we anticipated. Slightly than buying and selling in a variety, USD rallied and closed greater by 0.44% (7.2129), its largest one-day achieve in about 4 months. The sharp rally seems extreme, and as an alternative of continuous to rally, USD is extra more likely to consolidate right now, in all probability between 7.1920 and seven.2140.”
1-3 WEEKS VIEW: “Two days in the past (29 Jul, spot at 7.1820), we indicated that ‘upward momentum is constructing, however for a continued advance, USD should first shut above 7.1910.’ Yesterday, in a sudden transfer, USD surged to a excessive of seven.2140 earlier than closing on a robust word at 7.2129 (0.44%). The sharp rally seems to be extreme, however so long as USD holds above 7.1750 (‘robust help’ degree beforehand at 7.1660), there’s a likelihood for it to rise additional to 7.2250.”
