Ella 
189
24-hour view: Yesterday, we pointed out that USD/CNH could rise to 7.2000. However, we think “a sustained upside move above this level is unlikely”. USD/CNH rose more than expected, surging to 7.2151 before pulling back. Despite the gains, momentum has not improved much and USD/CNH is unlikely to strengthen further. Today, USD/CNH is more likely to trade in the range between 7.1830 and 7.2180.
Outlook for the next 1-3 weeks: Not much to add to our yesterday’s update (August 2, when the price was 7.1800). As we have highlighted, the current price action may be part of a consolidation phase. For now, USD/CNH is likely to trade within the 7.1300/7.2450 range.
