VOT Research Desk
According to Markets Strategist Quek Ser Leang and Economist Lee Sue Ann of the UOB Group, the USD/CNH trade should remain within the band of 7.100-7.2300 for the time being.
We emphasized yesterday that USD is unlikely to climb further and predicted it to ‘trade between 7.2000 and 7.2500, according to the 24-hour view.
After that unexpectedly large selloff, the US dollar fell to a low of 7.1347 before rising. The sudden decline seems exaggerated, and the USD is not likely to decline much more. It is more likely that the USD will trade today between 7.1300 and 7.2200.
Next 1-3 weeks, USD immediately declined below our price forecast, invalidating our opinion from yesterday (29 Nov, spot at 7.2350) that there is opportunity for USD to test major resistance above 7.2800. 7.1750 is a strong support level (low has been 7.1347).
A mixed perspective has been produced by the choppy price movements, and for the time being, the USD may trade within a large range of 7.1000/7.2300.
