USD/CNH: Likely to trade in a range between 7.1100 and 7.1250 – UOB Group
US Dollar (USD) is likely to trade in a range between 7.1100 and 7.1250. In the longer run, downward bias is building, but USD must first close below 7.1100 before a sustained decline can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Downward bias is building
24-HOUR VIEW: "Yesterday, we were of the view that USD 'is likely to trade in a range, likely between 7.1160 and 7.1330.' USD then traded in a range of 7.1142/7.1298, closing largely unchanged at 7.1198 (-0.05%). We are not able to derive much from the price action. Today, we continue to expect USD to trade in a range, most likely between 7.1100 and 7.1250."
1-3 WEEKS VIEW: "We have held the same view since Monday (08 Sep, spot at 7.1285), in which we highlighted that 'while the downward bias is building, USD must first close below 7.1100 before a sustained decline can be expected.' We will maintain our view as long as 7.1400 (no change in ‘strong resistance’ level) is not breached."