USD/CNH Expected to Trade Sideways Between 7.1640 and 7.1840 – UOB Group

USD/CNH Expected to Trade Sideways Between 7.1640 and 7.1840 – UOB Group

The US Dollar (USD) is likely to trade sideways against the Chinese Yuan (CNH) within the range of 7.1640 to 7.1840, according to analysts at UOB Group. After a sharp drop last Friday, the downward momentum appears to have weakened, limiting further declines.

In the short term, USD dipped to 7.1626 before rebounding to close fairly unchanged at 7.1783 (+0.09%). UOB Group expects the pair to continue trading sideways today within the mentioned range as downside pressure loses strength.

Looking at the medium-term outlook of 1-3 weeks, the analysts maintain a bearish bias for USD towards 7.1500, provided that the strong resistance level at 7.2070 is not breached. As long as this resistance holds, further downside for USD/CNH remains likely, although momentum to push significantly lower has yet to build.

Traders will watch the key support and resistance levels closely to gauge the pair’s next direction.