The US Dollar (USD) is likely to trade in a range between 7.2200 and 7.2500. In the longer run, the level to monitor now is 7.2800; the next resistance above 7.2800 is at 7.3115, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

USD/CNH can try to break and stay below 7.2200  

24-HOUR VIEW: “The following are the excerpts from our update yesterday, when USD was at 7.2240: ‘There has been a tentative slowdown in momentum. However, provided that USD remains above 7.2000 (minor support is at 7.2090), it could edge higher, and possibly test the major resistance at 7.2400 before a more sizeable and sustained pullback is likely.’ While our view of a stronger USD was correct, we underestimated its strength, as it soared to 7.2559 before easing off to 7.2440 ( 0.23%). The rapid rise is deep in overbought territory, but there is no sign of a pullback just yet. Overall, it appears that USD is likely to trade in a range today, probably between 7.2200 and 7.2500.”