UOB Group analysts Quek Ser Leang and Peter Chia suggest the US Dollar (USD) may experience further depreciation against the Chinese Yuan (CNH), although a decline to the key support level of 7.2430 is considered improbable. The longer-term outlook remains mixed due to recent volatile price movements, with a projected trading range of 7.2430 to 7.3700 for the near future.
Short-term analysis indicates potential for continued USD weakness, but oversold conditions mitigate the likelihood of breaching the 7.2430 support (with an intermediate support at 7.2700). A strong resistance level is identified at 7.3400, with minor resistance at 7.3250.
Medium-term analysis reveals a shift in outlook. The previously anticipated upward momentum towards 7.4500 was invalidated by a sharp decline below the 7.3100 support level. Consequently, a mixed outlook prevails, and a trading range between 7.2430 and 7.3700 is anticipated.
