The upside momentum in USD/CNH ought to push the pair lower back to the 6.4100 degree in the subsequent weeks, in accordance to FX Strategists at UOB Group.
Key Quotes
24-hour view: “Last Friday, we highlighted that ‘the sharp and fast upward shove seems to be jogging in advance of itself and USD is not likely to strengthen a lot further’ and we anticipated USD to ‘trade between 6.3800 and 6.4000’. USD because of this traded between 6.3786 and 6.3965. The underlying tone has softened particularly however any weak spot is anticipated to come across robust aid at 6.3730. Resistance is at 6.3870 accompanied via 6.3920.”
Next 1-3 weeks: “After USD rose to 6.3975, we highlighted remaining Friday (07 Jan, spot at 6.3900) that “upward momentum has increased barely however it seems too early to assume a sustained advance”. We added, there is room for USD to aspect greater to 6.4100 however a breach of 6.3730 (no exchange in ‘strong support’ level) would point out that the build-up in momentum has fizzled out. There is no trade in our view for now.”
