Chinese Yuan: Sideways range holds against US Dollar – UOB
United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann note that USD/CNH has been trading quietly, with intraday ranges clustered around current levels.
UOB analysts Quek Ser Leang and Lee Sue Ann have observed that the USD/CNH (Chinese Yuan) exchange rate has been trading within a narrow range lately. They predict that the US Dollar is likely to remain confined to this range due to the absence of fresh directional cues from recent price movements. On Friday, the USD closed 0.01% lower at 6.7441, while yesterday, it was at 6.7430.
The analysts noted that the price action provided no new clues and that USD could trade between 6.7370 and 6.7470. Today, they believe USD might trade between 6.7390 and 6.7470. Since early August, they have maintained the same view, suggesting that USD could continue to gradually decline towards 6.7300. Although USD decreased to a fresh low of 6.7377, there hasn't been a significant increase in downward momentum.
However, a breach of 6.7530, without altering the 'strong resistance' level, may indicate that the mild downward pressure is weakening.
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