US Dollar (USD) is likely to edge higher vs Chinese Yuan (CNH); mild momentum suggests any advance is likely limited to a test of 7.3150. Strong advance indicates there is potential for USD to rise to 7.3250, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Any advance is likely limited to a test of 7.3150 for now
24-HOUR VIEW: “We noted yesterday that ‘the current price movements are likely part of a range trading phase,’ and we expected USD to ‘trade between 7.2780 and 7.3010.’ USD subsequently dipped to 7.2850 before rising to 7.3078, closing slightly higher by 0.11% at 7.3036. The advance resulted in a slight increase in momentum. Today, USD is likely to edge higher, but any advance is likely limited to a test of 7.3150. The major resistance at 7.3250 is unlikely to come into view. Support is at 7.2940; a breach of 7.2850 would indicate that the mild upward pressure has eased.”
1-3 WEEKS VIEW: “Our latest narrative was from last Friday (28 Feb, spot at 7.2950), wherein the strong advance from last Thursday ‘indicates there is potential for USD to rise to 7.3250.’ We will continue to hold the same view as long as 7.2680 (‘strong support’ level previously at 7.2600) is not breached.”
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