Usdcnh To Retest Next Level Uob

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Usdcnh To Retest Next Level Uob

Usd/Cnh To Retest 7.3700 - Uob Group

The bullish momentum remains dominant in the USD/CNH pair. This has increased the chances of the USD to trade higher and target the levels around 7.3450 - 7.3650.

As for the long-term forecast, the USD/CNH seems to be on the path towards the 7.3700 handle. Right now, it would be too soon to say that the USD/CNH can successfully manage to break this level.

Uob Group Remains Bullish On Usd

The general perception is that the 7.3700 will remain a key level for the USD/CNH pair. In the short-term, the USD seems to be getting ready to target its next levels.

Earlier, the UOB Group had set a more wide range for the USD/CNH. At that time, they cited the 7.3430 - 7.3615 as the default range for the pair.

However, the USD/CNH remained near the 7.3561 with its eyes set on the 7.3700. Amidst all of this, the UOB Group believes that the 7.3050 support will play a key role.

As long as the USD bulls can defend the 7.3050, there's a chance that the next target for USD/CNH will be 7.3700. And when that happens, the support for the USD/CNH will be moved higher to the 7.3250.

One thing that can risk the advance of the USD is the intervention by the PBoC. If the Public Bank of China moves in to protect the local currency, we can expect a sudden drop in the USD/CNH.

Overall, the UOB Group is bullish on the USD/CNH pair, provided that the support levels stay intact. However, we also need to remember that Trump will be joining office in January 2025!

Now, that's one factor that can have some major implications for all the USD pairs, including the USD/CNH. Despite this, the UOB Group remains committed to its bullish forecast for the USD against the CNH.

Also, any surprises from the China or the USA in terms of economic releases can also invalidate or change this forecast by the UOB Group.

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