USD/CNH: To edge higher to 7.1500 before levelling off

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USD/CNH: To edge higher to 7.1500 before levelling off
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Room for the US Dollar (USD) to edge higher to 7.1500 before levelling off.

Room for the US Dollar to edge higher to 7.1500 before levelling off. In the longer run, momentum is slowing; a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. Momentum is slowing 24-HOUR VIEW: “We expected USD to trade in a range between 7.0990 and 7.1330 yesterday. USD subsequently dipped to 7.1081, then rebounded to 7.1380. USD closed at 7.1365, higher by 0.29%.

Today, we see room for USD to rise to 7.1500 before levelling off. The major resistance at 7.1600 is unlikely to come into view. On the downside, a breach of 7.1200 would indicate that the current mild upward bias has eased.” 1-3 WEEKS VIEW: “Our update from yesterday remains valid. As highlighted, the recent buildup in momentum is slowing, and a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further.

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