USD/CNH now faces some consolidation – UOB

USD/CNH is now expected to navigate within the 7.2800-7.3400 range in the next few weeks, note Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.
 

Key Quotes

24-hour view: Our view for USD to edge lower yesterday was incorrect. Instead of edging lower, USD rose to a high of 7.3175. The advance lacks momentum. While there is room for USD to advance today, it is unlikely to threaten the major resistance at 7.3400 (there is another resistance at 7.3280). On the downside, a breach of 7.3000 (minor support is at 7.3080) would indicate that the current mild upward pressure has faded. 

Next 1-3 weeks: We continue to hold the same view as last Thursday (21 Sep, spot at 7.3150), wherein the recent downward pressure has faded, and USD is likely to trade in a range, probably between 7.2800 and 7.3400.