USD/CNH Likely to Trade Between 7.1800 and 7.2300 as Momentum Builds – UOB Group

USD/CNH Likely to Trade Between 7.1800 and 7.2300 as Momentum Builds – UOB Group

The USD/CNH currency pair is forecasted to trade within a defined range between 7.1800 and 7.2300, according to FX strategists Quek Ser Leang and Peter Chia from UOB Group.

Short-Term Momentum May Push USD/CNH Higher

After rebounding to 7.1935 two days ago, USD/CNH showed limited momentum and remained between 7.1750 and 7.1950. However, recent price action has picked up pace, and the pair surged sharply today. The analysts expect this momentum to carry the USD/CNH price further upward, potentially reaching 7.2130. The critical resistance level at 7.2300 is within reach if the pair sustains above minor support at 7.1980 and holds above 7.1900.

Medium-Term Range Outlook

UOB’s 1 to 3-week view points to a broader consolidation in the 7.1800–7.2300 band. Earlier, a downward bias existed below the strong resistance at 7.2070, but the recent break above 7.2020 signals the easing of bearish pressure. As a result, the pair is expected to oscillate within this range as momentum fluctuates.

Key Levels to Watch

• Support: 7.1900 (minor), 7.1800
• Resistance: 7.2130 (near-term), 7.2300 (strong resistance)
• Momentum indicators suggest bullish short-term movement

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