Quek Ser Leang of United Overseas Bank (UOB) notes that the USD/CNH rate remains in a narrow range, with the dollar expected to trade between 6.7940 and 6.8080 in the near future. He maintains a positive USD assessment over a 1-3 week horizon as long as robust support at 6.7900 holds, and also sees initial upside momentum within 1-3 months, contingent on a break above the 21-week EMA.
The dollar maintains a range with upside risk
“24-HOUR VIEW: Following last Friday’s price action, we noted yesterday that there was “no change in momentum down or up” and we expected the US dollar to “trace between 6.7950 and 6.8100.” The USD then traded in a range of 6.7934/6.8073, closing slightly at 6.8003 (-0.06%). We still expect the USD to fluctuate, most likely between 6.7940 and 6.8080.”
“1-3 WEEK OUTLOOK: We have maintained a positive view towards USD since mid-month. Yesterday (June 29, spot at 6.8030) we indicated that “although the growth momentum has weakened, unless the ‘robust support’ at 6.7900 (without a change in the level) is broken, there is still a chance that USD USD will reach the level of 6.8300″. In our opinion, there is no change.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor.)
