US Dollar (USD) is likely to trade sideways between 7.2300 and 7.2600 vs Chinese Yuan (CNH). In the longer run, downward pressure remains intact; should USD break below 7.2260, the next level to watch is 7.2000, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Downward pressure remains intact
24-HOUR VIEW: “Yesterday, we indicated that USD ‘could decline gradually, but it does not appear to have enough momentum to break below 7.2260.’ Instead of declining, USD traded in a sideways range of 7.2340/7.2524, closing slightly higher (7.2450, +0.14%). There has been no change in either downward or upward momentum, and USD could continue to trade sideways, likely between 7.2300 and 7.2600.”
1-3 WEEKS VIEW: “Our update from yesterday (06 Mar, spot at 7.2440) still stands. As highlighted, “the downward pressure remains intact, and should USD break below and hold below 7.2260, the next level to watch is 7.2000.” To maintain the downward pressure, USD must not remain below 7.2800 (‘strong resistance’ level was at 7.2880 yesterday).”
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