US Dollar (USD) is likely to edge higher, potentially breaking above 7.1550. In the longer run, the price action suggests that USD could rise toward 7.1650, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH can potentially breake above 7.1550

24-HOUR VIEW: "We expected USD to 'trade in a range between 7.1340 and 7.1480' yesterday. USD then traded in a range of 7.1362/7.1490, closing at 7.1463 (+0.07%). There has been a tentative buildup in momentum and today, USD is likely to edge higher, potentially breaking above 7.1550. The next resistance at 7.1650 is unlikely to come under threat. To maintain the buildup in momentum, USD must not break below 7.1380, with minor support at 7.1420."

1-3 WEEKS VIEW: "In our most recent narrative was from two days ago (06 Oct, spot at 7.1400), we highlighted that 'upward momentum is starting to build, but for a continued advance, USD must first break and hold above 7.1480.' Yesterday, USD rose to a high of 7.1490 before closing at 7.1463. While we would have preferred a more decisive close above 7.1480, the price action suggests that USD could rise toward 7.1650. On the downside, a breach of 7.1330 would indicate that the buildup in momentum has eased."