Ella 
UOB Group Economist Lee Sue Ann and Market Strategist Quek Ser Leang commented that USD/CNH does not seem likely to fall further for the time being.
24-hour view: While we highlighted yesterday that slowing down momentum and oversold conditions “suggest low risk of USD/CNH weakness”, we think “consolidation between 7.1350-7.1800 is likely.” Far from consolidating , instead rose to a high of 7.1890 before closing above 7.1793 (+0.30%). The upward momentum has strengthened slightly, and the exchange rate has the opportunity to break through the strong resistance at 7.1930, but it is unlikely to touch the important resistance at 7.2180. Support is at 7.1720, followed by 7.1560.
Next 1-3 weeks: Last Monday (July 10), when the exchange rate traded at 7.2230, we noted that “short-term momentum is rapidly gaining strength, and the risk of a pullback below 7.1800 increases. Our view on the exchange rate lower is Correct. After falling to 7.1240 and bouncing back, we noted yesterday (17 Jul, now at 7.1500) that while the pair “remains weak, the next major support level at 7.1000 may not be imminent.” Upward momentum is starting to wane. However, only a break of 7.1930 (a “strong resistance” level unchanged) will keep the 7.1000 level off this time around.
