Chinese Yuan: Gradual decline within tight bands – UOB
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann expect USD/CNH to edge lower intraday but stay confined to a narrow 6.6890–6.6960 range, with a clear break below 6.6890 seen as unlikely. Over one to three weeks, they see downside extending toward 6.6820 as momentum builds.
Chinese yuan experienced a gradual decline within tight bands, according to strategists at United Overseas Bank (UOB). The analysts at UOB expect USD/CNH to edge lower intraday but remain confined to a narrow range of 6.6890-6.6960. Should a clear break below 6.6890 occur, it would likely extend the decline towards 6.6820 over a one to three-week period.
In the one to three-month outlook, further gradual declines are anticipated as the pair trades below the cloud near 6.7815. The 24-hour view showed USD extending its decline from the previous Friday, dipping to a low of 6.6912. Downward momentum has increased slightly, but it is unlikely to break clearly below 6.6890. One to three weeks ago, UOB noted that downward momentum was building, and if USD broke and held below 6.7000, it could decline toward 6.6920, provided it remained below 6.7170, which represented a strong resistance level.
Since then, USD has broken below 6.7000 and further declined to 6.6912. The likelihood of further decline remains, with the strong resistance level now at 6.7020.
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