USD/CNH: Extra gains seem likely above 7.2200 – UOB

USD/CNH is seen picking up further upside traction once 7.2200 is cleared, according to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “Yesterday, USD traded within a range of 7.1549/7.1916 before closing largely unchanged at 7.1782 (+0.04%). The price actions appear to be consolidative in nature and we expect USD to trade between 7.1450 and 7.2000 for today.”

Next 1-3 weeks: “Despite the relatively rapid rise from last week’s low of 7.0128, upward momentum is not strong. That said, the risk is still on the upside but USD has to break clearly above 7.2200 before further advance is likely. Overall, only a breach of the ‘strong support’ at 7.1250 would indicate that the upside risk has subsided.”