USD/CNH: The strong resistance moves to 7.1460 – UOB Group

The ‘strong resistance’ level for the US Dollar (USD) has moved lower to 7.1460 from 7.1750, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

USD may try to come back to 7.1460

24-HOUR VIEW: “USD plummeted last Friday, and it continues to decline today. While oversold, USD could drop further towards 7.0900 before stabilisation can be expected. The next support at 7.0636 is unlikely to come into view. Resistance levels are at 7.1200 and 7.1300.”

1-3 WEEKS VIEW: “Last Thursday (22 Aug, spot at 7.1300), we highlighted that ‘the recent price action has resulted in an increase in downward momentum, albeit not much.’ We added, ‘as long as USD remains below 7.1750, it is likely to edge lower in the coming days.’ However, we noted that ‘given the mild downward pressure, any decline is unlikely to reach July’s low of 7.0636.’ Last Friday, USD fell by 0.42% (NY close of 7.1163). Downward momentum has increased sharply, suggesting that there is potential for USD to decline to 7.0636. On the upside, the ‘strong resistance’ level has moved lower to 7.1460 from 7.1750.”