USD/CNH: A chance to break below 7.2800 – UOB Group

July 8, 2024 10:18 am

Instead of declining further, the US Dollar (USD) is more likely to trade in a 7.2800/7.2970 range, or at least in a wider range between 7.2700 and 7.3100, UOB Group analysts note.

USD/CNH can fall to 7.2700

24-HOUR VIEW: “While we expected USD to decline further last Friday, we were of the view that it ‘is unlikely to threaten the support at 7.2800.’ USD fell more than expected, as it dropped briefly to 7.2790 before rebounding to close largely unchanged (7.2882, -0.05%). The rebound in oversold conditions suggests instead of declining further, USD is more likely to trade in a 7.2800/7.2970 range today.”

1-3 WEEKS VIEW: “Last Thursday (04 Jul, spot at 7.3000), we highlighted that the recent buildup of upward momentum had largely dissipated. We were of the view that the current price movements are likely part of a consolidation, and we expected USD to trade between 7.2700 and 7.3100 or the time being. There is no change in our view.”

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