UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia stated that USD/CNH could have accelerated gains on a break above 7.2380 in the following weeks.
Following the USD trade expectation between 7.1600 and 7.2200 last Friday, USD dropped to a low of 7.1600 and rebounded strongly to a high of 7.2284 in London trade before trading sideways for the rest of the sessions.
Peter Chia stated there is no significant addition to their update from last Friday. He went further to say that the USD strength is not ruled out. However, 7.2380 is a solid resistance now, and the USD has to break this level before a sustained rise is likely. He concluded by saying that only a breach of 7.1500 would reflect that the upside risk has subsided.