USD/CNH: A break above 7.3100 is likely – UOB Group

Chance for USD to edge above 7.3100, but it is unlikely to be able to maintain a foothold above this level. If it breaks above 7.3100, the next significant resistance at 7.3400 may come into view, UOB Group analysts note. 

The next resistance at 7.3400 may come into view

24-HOUR VIEW: “We noted yesterday that ‘the price action is likely part of a range trading phase,’ and we expected USD to trade between 7.2930 and 7.3060. USD then traded in a narrower range than expected (7.2965/7.3060). There has been a slight increase in upward momentum, and there is a chance for USD to edge above 7.3100 today. Given the mild upward momentum, it is unlikely to be able to maintain a foothold above this level. The next resistance at 7.3200 is highly unlikely to come into view. Support levels are at 7.2980 and 7.2930.”

1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (27 Jun, spot at 7.2990), we indicated that USD could break above 7.3100, but it is too early to tell if the next significant resistance at 7.3400 will come into view. There is no change in our view. Overall, only a breach of 7.2800 (no change in ‘strong support’ level) would mean that the advance in USD from the middle of the month has ended.”