Above 7.2960, USD can stop declining – UOB Group

The US Dollar (USD) is expected to trade between 7.2700 and 7.2900 against the Chinese Yuan (CNH). In the longer run, a breach of 7.2960 would indicate that the USD/CHN is not declining further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD can decline towards the major support level at 7.2300

24-HOUR VIEW: “Our view for USD to “trade between 7.2620 and 7.2850” yesterday was incorrect, as it traded in a 7.2735/7.2930 range. The price action provides no fresh clues. Today, we expect USD to trade between 7.2700 and 7.2900.”

1-3 WEEKS VIEW: “Our most recent narrative was from Monday (17 Feb, spot at 7.2600), wherein ‘the increase in downward momentum suggests USD could decline the major support level at 7.2300.’ After rebounding from 7.2428, USD has not been able to make further headway on the downside. From here, a breach of 7.2960 (no change in ‘strong resistance’ level), we indicate that USD is not declining further.”