Unlikely to break the support at 6.9520 – UOB Group

US Dollar (USD) could edge lower but is unlikely to break the support at 6.9520. In the longer run, USD remains neutral but is now expected to trade in a lower range of 6.9520/6.9900, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

USD/CNH is expected to trade in a lower range of 6.9520/6.9900

24-HOUR VIEW: “We expected USD to ‘trade in a range between 6.9650 and 6.9770’ yesterday. However, after rising to 6.9738, USD dropped to a low of 6.9614. The decline has resulted in a slight increase in downward momentum. Today, USD could edge lower, but it is unlikely to break the support at 6.9520. On the upside, resistance levels are at 6.9680 and 6.9750.”

1-3 WEEKS VIEW: “We have held a neutral USD view since last week. In our latest narrative from Tuesday (13 Jan, spot at 6.9710), we stated that USD ‘remains neutral but is now expected to trade in a lower range of 6.9520/6.9900’. Our view remains unchanged.”