United Abroad Financial institution (UOB) strategists Quek Ser Leang and Lee Sue Ann observe that USD/CNH is presently consolidating in a slim vary round 6.77. Of their 1–3 week view, they preserve a draw back bias towards 6.7600 so long as robust resistance at 6.7820 stays intact. Over 1–3 months, they see tentative upside potential if key technical resistance is damaged.
Quick-term consolidation, medium-term draw back bias
“24-HOUR VIEW: After USD fell as we anticipated on Wednesday, we highlighted the next yesterday: “Our view was not incorrect, as USD subsequently rose to six.7781 after which fell to a low of 6.7653. Downward momentum continues to extend, and at this time, there’s a likelihood for USD to check 6.7600. To maintain the momentum going, USD should maintain beneath 6.7780 (minor resistance is at 6.7720).” Our expectation didn’t materialise, as USD traded in a quiet method between 6.7649 and 6.7753, closing little modified at 6.7734 (+0.07%). The present worth actions are seemingly a part of a consolidation section, which is anticipated to be between 6.7670 and 6.7780.”
“1-3 WEEKS VIEW: Two days in the past (15 Jul, spot at 6.7720), we highlighted that “downward momentum is growing, and USD is prone to commerce with a draw back bias towards 6.7600.” We are going to proceed to carry the identical view so long as 6.7820 (no change in ‘robust resistance’ stage) just isn’t breached.”
(This text was created with the assistance of an Synthetic Intelligence device and reviewed by an editor. Know extra.)
