Usdcnh Eyes Next Support

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Usdcnh Eyes Next Support

Usd/Cnh Eyes Next Support - Uob Group

According to the UOB Group, the US Dollar is expected to stay weak against its Chinese counterpart. Looking ahead, the 7.1700 support is pretty solid and will remain out of reach for now.

However, the long-term trend suggests that a break below the 7.1700 is possible. In fact, the CNH bulls will attempt to break this support in the coming months.

Usd/Cnh To Target 7.1700

The short-term trend shows that the US Dollar remains under pressure. That's why the USD/CNH closed near 7.199, but experts believe that the sell-off was too sharp and a little overdone. Even then, there's no clear sign that the pair has stabilized yet, which means there's more to come.

There is another support near the 7.1840 handle, which must be breached before testing the 7.1700. On the way up, the important resistance levels to watch are 7.2100 and then 7.2180.

During the next 1-2 months, the US Dollar is expected to range-trade before starting the downtrend once again. Once that happens, the focus will immediately shift to 7.1700. On the way up, the first resistance to watch over the long term is the 7.2420.

While we discuss the USD and the CNH, it's important to also look at the US-China relations. Without sugarcoating things, the relations are not that good, and it can already be seen in many different ways.

For starters, the US wants to work on correcting its trade imbalance with China. That's why the US has already imposed heavy tariffs on Chinese products and services.

On the other hand, China has also retaliated with same tariffs on the US products and services. Although both countries have temporarily suspended some tariffs, they are still way higher than what they were in the past.

With that in mind, we can expect a great deal of uncertainty in the USD/CNH pair. But during the next 1-2 months, the USD/CNH is expected to go down, based on the UOB Group analysts.

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