Further USD declines are not ruled out, but major support at 7.0885 is likely out of reach for now. In the longer run, USD remains negative, and the next level to watch is 7.0885, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH remains negative

24-HOUR VIEW: "Following the drop in USD to a low of 7.1107 on Wednesday, we highlighted yesterday, Thursday, that 'the rapid increase in downward momentum suggests USD could decline, but the major support at 7.0990 is likely out of reach for now'. We did not anticipate the rapid acceleration in downward momentum, as USD plummeted to a low of 7.0918. Further declines are not ruled out, but given the deeply oversold conditions, the major support level at 7.0885 is likely out of reach. Resistance levels are at 7.1030 and 7.1085."

1-3 WEEKS VIEW: "Yesterday (13 Nov, spot at 7.1110), we highlighted that USD 'is negative now, and the level to watch on the downside is 7.0995'. While our view was not wrong, we did not expect USD to breach 7.0995 so quickly, as it dropped to a low of 7.0918. We continue to hold a negative USD stance, and now expect a move to 7.0885. We will maintain our view as long as 7.1170 (‘strong resistance’ level was at 7.1235 yesterday) is not breached."