Ella 
167
We were bearish on USD/CNH yesterday. However, we believe that “any downside is unlikely to breach the key support at 7.2500.” There was no downside as the price bounced off the 7.2700 low to close flat at 7.2917 (-0.04%). This appears to be a sideways move, likely to consolidate between 7.2800-7.3050 today.
The next 1-3 weeks: Since last Thursday (August 24th, the market price was 7.2840), we have emphasized that “the recent upward momentum has weakened, and the exchange rate may temporarily trade between 7.2500/7.3300.” At present, our view remains unchanged.
