USD/CNH seen extending the upside – UOB

USD/CNH keeps looking to the 7.0567 level in the short-term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded between 6.9849 and 7.0300 yesterday, narrower than our expected range of 6.9800/7.0500. The price action offers no fresh clues and USD is likely to trade sideways for now, likely between 6.9800 and 7.0400.”

Next 1-3 weeks: “After the strong surge in USD last Thursday (12 Mar), we highlighted on Friday (13 Mar, spot at 7.0200) that ‘further USD strength is likely’ and added, ‘a break of last month’s 7.0567 peak could lead to a move towards 7.0865’. So far, the 7.0567 level is still intact. From here, we continue to hold the same view and only a break of the 6.9500 (no change in ‘strong support’ level) would indicate that USD is not ready to move above 7.0567 just yet.”