Expected to consolidate in a range of 7.1780/7.1980 – UOB Group

US Dollar (USD) is expected to consolidate in a range of 7.1780/7.1980. In the longer run, USD appears to have moved into a 7.1600/7.2240 range trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH to trade in a range

24-HOUR VIEW: “We expected USD to ‘consolidate in a range of 7.1800/7.2000’ yesterday. USD subsequently traded between 7.1836 and 7.1953, a narrower range than we expected. The price action provides no fresh clues, and we continue to expect consolidation today, likely between 7.1780 and 7.1980.”

1-3 WEEKS VIEW: “In our most recent narrative from Monday (04 Aug, spot at 7.1900), we highlighted that USD ‘appears to have moved into a 7.1600/7.2240 range trading phase.’ USD traded in a range over the past couple of days, and we continue to hold the same view.”