Ella 
24-hour view: Yesterday we thought that USD/CNH was “under moderate downward pressure and could edge lower. Any decline is unlikely to threaten last week’s low of 7.1170.” Our view did not materialize as the exchange rate was between 7.1332-7.1572 Slightly fluctuated and closed flat (7.1465, -0.03%). Momentum indicators are largely flat and today we expect the pair to trade between 7.1280-7.1700.
The next 1-3 weeks: Last Wednesday (July 26, the market price was 7.1465) we emphasized that “downward momentum has strengthened, and the exchange rate has room to fall further. It is worth pointing out that multiple strong support levels are at 7.1240 and 7.1000.” The exchange rate fell to 7.1170 After rebounding, we emphasized on last Friday (July 28, market price 7.1700) that “if it rises above 7.2000, it means that it will not touch 7.1000 this time.” Our view remains unchanged.
