USD/CNH faces further upside near term – UOB

According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, further upside in USD/CNH targets the 7.1800 level in the next few weeks.

Key Quotes

24-hour view: “Yesterday, USD soared to a high of 7.1527 before closing on a firm note at 7.1470 (+0.42%). The rapid rise has gathered momentum and USD is likely to strengthen further today. However, the major resistance at 7.1800 is likely out of reach for now (there is another resistance at 7.1640). Support is at 7.1350, followed by 7.1200.”

Next 1-3 weeks: “Yesterday, USD soared to a high of 7.1527. The break above 7.1500 is accompanied by strong momentum and the risk for USD is on the upside. The next level to monitor is 7.1800, followed by the major level of 7.2000. The upside risk is intact as long as USD stays above 7.1100.”