The USD/CNH pair is showing signs of potential upward movement, with analysts from UOB Group suggesting that the US Dollar (USD) may break above 7.3100. Currently trading in a range between 7.2920 and 7.3060, the USD’s next significant resistance level at 7.3400 remains uncertain.
In the short-term view, USD has exhibited a slight increase in momentum, surpassing expectations by not only breaching 7.3000 but also nearing 7.3100. However, the overbought conditions following this high point indicate a potential range-bound trading scenario today, likely oscillating between 7.2920 and 7.3060.
Looking ahead to the next 1-3 weeks, the positive outlook for USD remains intact following its recent surge to 7.3080. While further upside potential exists and a break above 7.3100 is plausible, the emergence of the next resistance at 7.3400 remains uncertain. The support level at 7.2800 is crucial to monitor, with the upside risk prevailing as long as this level remains unbreached.
