USD/CNH might edge higher to 7.1390 – UOB Group

Slight increase in upward momentum suggests US Dollar (USD) could edge higher to 7.1390. In the longer run, there is scope for USD to test 7.1450, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

There is scope for USD to test 7.1450

24-HOUR VIEW: “The following are excerpts from our update yesterday: ‘The price movements have resulted in a slight increase in upward momentum, but this is likely to lead to a higher trading range of 7.1220/7.1340 rather than a sustained advance’. USD subsequently traded between 7.1244 and 7.1359, closing at 7.1359 (+0.13%). There has been a slight increase in upward momentum, and USD could edge higher to 7.1390 today. The next resistance at 7.1450 is unlikely to come into play. Support levels are at 7.1270 and 7.1230.”

1-3 WEEKS VIEW: “Yesterday (04 Nov, spot at 7.1270), we highlighted that USD ‘is facing mild upward pressure and there is a chance for it to test 7.1370’. USD subsequently rose to a high of 7.1359. Upward momentum has increased further, albeit not much. That said, there is scope for USD to test 7.1450 from here. To sustain the mild upward momentum, USD must hold above 7.1170 (‘strong support’ level was at 7.1140 yesterday).”