Ella 
137
We highlighted yesterday that “USD/CNH still has room to rise, but it is unlikely to threaten the main resistance level of 7.3400”. Our expectations did not materialize, with USD/CNH trading sideways in a tight range between 7.3061 and 7.3162, ending the day essentially unchanged at 7.3100 (-0.08%). Momentum indicators are mostly neutral and further sideways movement is possible. Today’s expected range: 7.3000/7.3200.
Outlook for the next 1-3 weeks: We continue to hold the same view as last Thursday (September 21, spot price 7.3150), that is, the recent downward pressure has weakened, and USD/CNH may trade in the range of 7.2800-7.3400 cast.
