According to UOB Group’s FX analysts Quek Ser Leang and Peter Chia, there is room for the US Dollar (USD) to slip below the 7.1100 level against the Chinese Yuan (CNH), but any decline is expected to be gradual. They note that the key support at 7.1000 is unlikely to be reached in the near term.
24-Hour View: Sideways Trading Continues
The analysts noted that, as expected, the USD traded within a narrow range on Monday, moving between 7.1175 and 7.1261. Looking ahead, they foresee continued range-bound movement, likely between 7.1130 and 7.1260 in the short term.
1-3 Weeks View: Downside Possible, But Slow
As of last Friday (September 12), UOB maintained the view that the USD still has room to dip below 7.1100. However, due to a lack of strong downward momentum, any move lower is expected to be slow. The analysts also emphasized that the major support level at 7.1000 may not be tested anytime soon.
This outlook remains valid as long as the resistance level at 7.1350 holds.