US Dollar (USD) could rise and test 7.2010 against Chinese Yuan (CNH); the major resistance at 7.2100 is unlikely to come into view. In the longer run, USD is still trading in a range; a narrower range of 7.1700/7.2100 is likely enough to contain the price movements, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD is still trading in a range
24-HOUR VIEW: “While we indicated yesterday that ‘the price action still appears to be part of a consolidation phase,’ we pointed out that ‘the firmer underlying tone suggests USD is likely to trade in a higher range of 7.1820/7.1980.’ Our assessments were not wrong, as after dipping to a low of 7.1830, USD rose and reached of a high of 7.1982. The advance has gathered some momentum, and USD could rise and test 7.2010 today. The major resistance at 7.2100 is unlikely to come into view. Support levels are at 7.1885 and 7.1830.”
1-3 WEEKS VIEW: “The following is from our update yesterday (11 Aug, spot at 7.1880). ‘In our most recent narrative from last Monday (04 Aug, spot at 7.1900), we highlighted that USD ‘appears to have moved into a 7.1600/7.2240 range trading phase.’ Since then, USD traded in a relatively quiet manner, and while we continue to expect range trading, a narrower range of 7.1700/7.2100 is likely enough to contain the price movements for now.’ There is no change in our view.”
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