Rebound amid obvious constructive divergence suggests US Greenback (USD) might rise additional to 7.2400 vs Chinese language Yuan (CNH); robust resistance at 7.2800 is unlikely to return below menace. Within the longer run, USD might range-trade for just a few days earlier than resuming its decline; the extent to observe is at 7.1700, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Robust resistance at 7.2800 is unlikely to return below menace
24-HOUR VIEW: “USD fell to a low of seven.1846 yesterday after which rebounded. The rebound amid obvious constructive divergence suggests there’s room for USD to rise additional to 7.2400. The robust resistance at 7.2800 is unlikely to return below menace. Help ranges are at 7.2020 and seven.1900.”
1-3 WEEKS VIEW: “Yesterday, USD prolonged its sharp decline from final Friday, reaching its lowest degree since Nov final 12 months. Though an extra decline stays attainable, the deeply oversold short-term situations counsel that the USD could range-trade for just a few days earlier than resuming its decline. The extent to observe is at 7.1700. On the upside, if USD breaks above the ‘robust resistance’ at 7.2800, it might imply that it’s not declining additional.”
