There may be potential for US Greenback (USD) to drop beneath 7.1500 towards Chinese language Yuan (CNH); it’s unclear whether or not there may be adequate momentum for it to succeed in 7.1450. Within the longer run, downward momentum has elevated additional; if USD breaks beneath 7.1450, the subsequent stage to observe is 7.1300, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Downward momentum has elevated additional
24-HOUR VIEW: “We anticipated USD to ‘commerce in a spread of seven.1590/7.1780’ yesterday. USD subsequently traded between 7.1582 and seven.1706. USD closed at 7.1584 earlier than declining within the early Asian commerce right this moment. Given the growing momentum, there may be potential for USD to drop beneath 7.1500 right this moment. Nevertheless, it’s unclear for now whether or not there may be adequate momentum for USD to succeed in 7.1450. On the upside, resistance ranges are at 7.1630 and seven.1670.”
1-3 WEEKS VIEW: “Final Wednesday (25 Jun, spot at 7.1680), we highlighted that ‘there was a tentative buildup in momentum, and USD is more likely to edge decrease to 7.1450.’ Yesterday, USD dropped to a low of seven.1582. Downward momentum has elevated additional, and if USD breaks beneath 7.1450, the subsequent stage to observe is 7.1300. We’ll keep our view so long as the ‘robust resistance’ at 7.1790 (stage beforehand at 7.1950) shouldn’t be breached.”
