additional loss USD/CNH UOB Group economist Lee Sue Ann and market strategist Quek Ser Leang are expected to meet solid support at 6.8400 in the short term.
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24 Hour View: “We didn’t expect the US dollar to drop so much yesterday (we expected the US dollar to consolidate). After such a sharp drop, further losses are unlikely However, there is room for USD weakness to extend to 6.8550 before stabilization becomes more likely.The resistance is at 6.8950 and a break above 6.9100 would indicate USD weakness has stabilized. .”
Next 1-3 weeks: “We have maintained our positive view on the US dollar since the beginning of last month. We need to break through 7.0000 within the next few days or the potential for further upside will quickly diminish”. I was surprised by the huge sell-off when it fell below and closed at a whopping 1.08% (6.8800). Breaking through the ‘strong support’ level marks the end of a month of US dollar strength. A large drop seems overkill and we expect 6.8400 to provide solid support, although there is still room for the USD to fall further. On the upside, a break above 6.9350 would indicate that the USD is unlikely to fall further. ”