United Abroad Financial institution (UOB) analysts Quek Ser Leang and Lee Sue Ann see USD/CNH confined to a slender intraday vary, with flat momentum suggesting consolidation between 6.7450 and 6.7550. Their 1–3 week view nonetheless anticipates the Greenback edging decrease towards 6.7300 whereas 6.7640 caps the upside, and over 1–3 months a sustained restoration requires a break above the 21-week EMA at 6.8430.
Greenback seen consolidating in tight band
“24-HOUR VIEW: Following Wednesday’s worth actions, we highlighted the next yesterday: “Regardless of the quiet worth motion, the underlying tone seems to be tender, and there’s a probability for USD to check 6.7420. Nonetheless, a continued decline beneath this stage nonetheless seems unlikely. On the upside, resistance is at 6.7550.” USD subsequently traded in a quiet method between 6.7457 and 6.7518, closing unchanged at 6.7483. Flat momentum indicators recommend range-trading right this moment, most certainly between 6.7450 and 6.7550.”
“1-3 WEEKS VIEW: In our most up-to-date narrative from Monday (03 Aug, spot at 6.7490), we highlighted that “whereas USD edged decrease final week, there was no clear improve in downward momentum.” Nonetheless, we have been of the view that USD “might proceed to edge decrease towards 6.7300 so long as 6.7640 (‘sturdy resistance’ stage) is just not breached.” Though USD has not been capable of make additional headway on the draw back, we are going to proceed to carry the identical view for now.”
(This text was created with the assistance of an Synthetic Intelligence software and reviewed by an editor. Know extra.)
