There is a chance for USD to drop below 7.1750; the major support at 7.1600 is not expected to come under threat. In the longer run, US Dollar (USD) appears to have moved into a 7.1600/7.2240 range trading phase against Chinese Yuan (CNH), UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD/CNH appears to have moved into a 7.1600/7.2240 range
24-HOUR VIEW: “Following last Friday’s price movements, we indicated yesterday that ‘there has been a buildup in downward momentum, albeit not by much.’ We expected USD to ‘edge lower,’ but we held the view that ‘any decline might not be able to reach 7.1750.’ We were not wrong, as USD edged to a low of 7.1766 before recovering to close slightly lower at 7.1844 (-0.09%). The underlying tone remains soft, and today, there is a chance for USD to drop below 7.1750. The major support at 7.1600 is not expected to come under threat. Resistance is at 7.1880, followed by 7.1930.”
1-3 WEEKS VIEW: “There is not much to add to our update from yesterday (04 Aug, spot at 7.1900). As highlighted, USD ‘appears to have moved into a 7.1600/7.2240 range trading phase’.”