- Analytics
- News and Tools
- Market News
- USD/CNH: A drop below 7.2600 remains in the pipeline – UOB
USD/CNH: A drop below 7.2600 remains in the pipeline – UOB
A move to the sub-7.2600 region in USD/CNH should not be ruled out, comment Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: After USD fell sharply on Wednesday, we indicated yesterday that “despite the relatively large decline, downward momentum has not improved all that much.” We held the view that USD “is likely to grind below 7.2600.” We were also of the view that “the next major support at 7.2390 is unlikely to come into view.” Instead of ‘grinding below 7.2600’, USD dropped to 7.2609 before snapping back up to end the day at 7.2903 (+0.27%). Downward pressure has eased, and USD has likely entered a consolidation phase. Today, we expect USD to trade in a range of 7.2750/7.3080.
Next 1-3 weeks: Yesterday (14 Sep, spot at 7.2740), we highlighted that “downward momentum has increased, and USD could break below 7.2600.” We indicated, “the next support level is at 7.2390.” USD then dropped to 7.2608 before rebounding. We continue to hold the same view. That said, oversold short-term conditions suggest USD could consolidate for a couple of days before heading lower. On the upside, if USD breaks above 7.3200 (no change in ‘strong resistance’ level), it would indicate that the current downward pressure has faded.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
