USD/CNH: Set to trade in a sideways range of 7.3210/7.3610– UOB Group

US Dollar (USD) is expected to trade in a sideways range of 7.3210/7.3610. In the longer run, room for USD to retest the 7.3700 level; it is too early to determine if it can break and remain above this level, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Room for USD to retest the 7.3700 level

24-HOUR VIEW: “USD plunged from 7.3640 yesterday, reaching a low of 7.3131. It then rebounded to close lower by 0.17% at 7.3450. The price action did not result in an increase in either downward or upward momentum. Today, we expect USD to trade sideways between 7.3210 and 7.3610.”

1-3 WEEKS VIEW: “Last week, USD rose to a high of 7.3700 before pulling back. The pullback is likely part of a range trading phase. As long as 7.3050 is not breached, there is room for USD to retest the 7.3700 level. At this time, it is too early to determine if USD can break and remain above this level.”