Danger for US Greenback (USD) stays on the draw back in opposition to Chinese language Yuan (CNH); the numerous help stage at 7.1295 might be out of attain for now. Within the longer run, USD view is detrimental; it might drop to 7.1295, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
USD view is detrimental
24-HOUR VIEW: “We detected ‘a delicate underlying tone’ yesterday. We indicated that ‘that is more likely to result in a decrease vary of seven.1635/7.1800 relatively than a sustained decline.’ The next value actions didn’t prove as we anticipated. USD plunged and never solely broke under 7.1635 but additionally the most important help stage at 7.1550. Given the robust downward momentum, the chance for USD stays on the draw back. Nevertheless, the numerous help stage at 7.1295 might be out of attain for now (there’s one other help stage at 7.1400). To maintain the robust downward momentum, USD should maintain under 7.1630 (minor resistance is at 7.1560).”
1-3 WEEKS VIEW: “We have now held the identical view since final Monday (14 Jul, spot at 7.1730), whereby USD ‘is anticipated to commerce in a variety between 7.1550 and seven.1920.’ After buying and selling in a comparatively quiet method for a number of days, USD plummeted and closed at 7.1514 yesterday, down by 0.25%. There was a pointy enhance in downward momentum, and we’re revising our USD view to detrimental, anticipating a drop to 7.1295. We are going to preserve our view offered that USD stays under the ‘robust resistance’ stage, presently at 7.1730.”
