USD/CNH: Shrinking odds for a move to 7.1700 – UOB

FX Strategists at UOB Group noted a break above the 7.1700 level in USD/CNH seems to be losing some traction.

Key Quotes

24-hour view: “Expectation for USD to ‘drift lower to 7.0550’ did not materialize as it traded in a relatively quiet manner before ending the day little changed at 7.0866 (+0.03%). Momentum indicators are turning neutral and USD could trade between 7.0600 and 7.1300 for today.”

Next 1-3 weeks: “There is not much to add to our update from last Wednesday (25 Mar, spot at 7.0700). As highlighted, USD has not been able to make much headway on the upside after surging to a high of 7.1652. For now, we continue to see chance for USD to break 7.1700 even though the odds have diminished further. However, only a break of 7.0350 (no change in ‘strong support’ level would indicate that the recent upward pressure has eased.”