A deeper pullback appears on the horizon should USD/CNH break 7.1100 in the short term, suggest Quek Ser Leang, UOB Group Market Strategist and Peter Chia, Senior FX Strategist.
Featured Statements
24-hour opinion: Yesterday we indicated that “as long as the USD remains below 7.1500, it is likely to go down.” Our opinion was wrong as the USD rose to the high of 7.1550. The advance lacks momentum, and the USD is unlikely to rise much further. Today, the USD is most likely to trade in a range, probably between 7.1300 and 7.1580.
Next 1-3 weeks: Our update from yesterday (Dec 4, spot at 7.1250) is still valid. As highlighted, the recent price action has resulted in a slight increase in bearish momentum. If USD breaks the main support of 7.1100, the next level to watch is 7.0600. Conversely, if the USD breaks above 7.1660 (no change to the “strong resistance” level), it would mean that the USD weakness since the middle of last month has stabilized.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
