There’s a likelihood for US Greenback (USD) to check 7.1650 vs Chinese language Yuan (CNH); the most important help at 7.1500 is unlikely to become visible. Within the longer run, downward momentum has not elevated considerably, however bias for USD is on the draw back towards 7.1500, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Bias for USD is on the draw back towards 7.1500
24-HOUR VIEW: “Opposite to our expectation of vary buying and selling, USD fell final Friday, closing down by 0.46% at 7.1720. The decline seems to be overdone, however there’s a likelihood for USD to check 7.1650 earlier than stabilisation is probably going. The most important help at 7.1500 is unlikely to become visible. Resistance ranges are at 7.1870 and seven.1980.”
1-3 WEEKS VIEW: “In our newest narrative from final Tuesday, 20 Might, when USD was at 7.2160, we famous that the current ‘downward momentum has largely pale, and as a substitute of weakening, USD is prone to commerce in a 7.1850/7.2450 vary for now.’ After buying and selling in a variety for just a few days, USD fell under 7.1850 final Friday (low of seven.1717). Regardless of the decline, downward momentum has not elevated considerably. That stated, so long as 7.2070 (‘sturdy resistance’ degree) just isn’t breached, the bias for USD is on the draw back towards 7.1500.”
