USD/CNH: Momentum has slowed somewhat - UOB Group

US Dollar (USD) is expected to trade between 7.2620 and 7.2850 vs Chinese Yuan (CNH). In the longer run, increase in momentum suggests USD could decline to the major support at 7.2300, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD can decline to the major support at 7.2300

24-HOUR VIEW: "We noted yesterday that USD 'has likely entered a range trading phase, and it is likely to trade between 7.2500 and 7.2780.' However, USD traded in a higher range than expected (7.2658/7.2864) before closing at 7.2769 (+0.17%). The higher range did not result in any increase in upward momentum. Today, we expect USD to trade between 7.2620 and 7.2850."

1-3 WEEKS VIEW: "Two days ago (17 Feb, spot at 7.2600), we highlighted that, 'the increase in downward momentum suggests USD could decline the major support level at 7.2300.' USD then dropped to 7.2428 before rebounding. Momentum has slowed somewhat but as long as 7.2960 (no change in 'strong resistance' level) is not breached, there is still a chance for USD to decline."