Chinese Yuan: Upside bias within defined band against US Dollar – UOB
UOB strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH as holding largely unchanged, but with a slight increase in downward momentum. Intraday, they see the bias tilted lower toward 6.6950, with resistance at 6.7055 and 6.7100 and a clear break below 6.6950 deemed unlikely. Over 1–3 weeks, they expect USD/CNH to trade between 6.6950 and 6.7270, while over 1–3 months they anticipate…
UOB strategists Quek Ser Leang and Lee Sue Ann describe the USD/CNH exchange rate as maintaining a relatively stable position, but with a slight shift towards a downward momentum. Currently, they believe the bias is leaning lower, targeting a rate of 6.6950. The resistance levels are noted at 6.7055 and 6.7100, while a break below 6.6950 is considered unlikely.
Over a time frame of 1-3 weeks, they anticipate USD/CNH to trade within the range of 6.6950 and 6.7270. In the longer term, over 1-3 months, they forecast a gradual downside movement as long as the rate remains below the cloud near 6.7815. Earlier, they had stated that the USD could potentially rise, but they maintained that it was more probable for the USD to remain within the 6.7000/6.7100 range.
Indeed, the USD did rise to 6.7095, dip to 6.7015 before settling at 6.7027, showing a slight increase (+0.02%). This indicates that the downward momentum is becoming more pronounced, pushing the bias towards 6.6950. A clear break below this level remains unlikely, with resistance at 6.7055 and then 6.7100.
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