US Greenback (USD) is more likely to commerce between 7.1750 and seven.1950 in opposition to Chinese language Yuan (CNH). Within the longer run, downward momentum is slowing; a breach of seven.2070 would imply that the downward bias has pale, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Downward momentum is slowing
24-HOUR VIEW: “After USD dropped to 7.1626 two days in the past after which rebounded, we indicated yesterday that ‘downward strain seems to have eased, and USD is more likely to commerce sideways at this time, in all probability between 7.1640 and seven.1840.’ We didn’t count on USD to rebound to 7.1935. The rebound lacks momentum, and as a substitute of extending additional, USD is more likely to commerce between 7.1750 and seven.1950.”
1-3 WEEKS VIEW: “On Monday (26 Might, spot at 7.1770), we indicated that ‘whereas downward momentum has not elevated considerably, so long as 7.2070 (‘sturdy resistance’ stage) is just not breached, the bias for USD is on the draw back towards 7.1500.’ USD subsequently dropped to 7.1626 after which rebounded. Yesterday, it rebounded additional to 7.1935. Whereas downward momentum is starting to sluggish, solely a breach of seven.2070 (no change in ‘sturdy resistance’ stage) would imply that the downward bias has pale.”
