The US Dollar (USD) may fall. Any decline is likely to be limited to a test of 6.9470. In the long term, the US dollar is under moderate downward pressure and may fall to 6.9400, noted UOB Group FX analysts Kwek Ser Liang and Peter Xia.
USD/CNH is under moderate downward pressure
24-hour view: “The US dollar drifted to a low of 6.9498 yesterday, recovering slightly to close marginally lower by 0.01% at 6.9565. Price action led to a slight increase in bearish momentum. Today, the US dollar could fall, but any decline is likely to be limited to a test of 6.9470. Key support is unlikely to emerge at 6.9400. Resistance at 6.9600, followed by 6.9650.”
1-3 week view: “The US dollar has fallen over the past few days, and the decline has increased downward momentum, although not significantly. From here, the US dollar could continue to fall, potentially reaching 6.9400. To maintain moderate downward pressure, the US dollar must remain below 6.9750 (the ‘strong resistance’ level).”
