In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further upside could see USD/CNH challenge the 7.2800 area in the short-term horizon.

Key Quotes

24-hour view: “The strong surge in USD to a high of 7.2551 yesterday appears to be overdone. In other words, USD is unlikely to advance further. Today, USD is more likely to trade between 7.2000 and 7.2500.”

Next 1-3 weeks: “While the rapid rise in USD the last couple of days appears to be running ahead of itself, there is room for USD to test the major resistance at 7.2800. At this stage, the odds of a sustained rise above 7.2800 are not high. On the downside, a break of 7.1750 (‘strong support’ level) would indicate that USD is not ready to test 7.2800.”