Chinese Yuan: Upside risk below 6.6900 against US Dollar – UOB
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH as softening within a 6.6900–6.7000 range, with scope for a dip below 6.6900 while major support at 6.6800 should hold. On a 1–3 week view, a close below 6.6900 could trigger a move toward 6.6800. Over 1–3 months, they expect the pair to edge lower below the cloud.
UOB strategists Quek Ser Leang and Lee Sue Ann note that the USD/CNH exchange rate is trending downward within a 6.6900-6.7000 range. Minor potential for slipping below 6.6900 is present, but major support at 6.6800 remains intact. If the pair closes below 6.6900 within the next week, it could trigger a move toward 6.6800. Over a one-to-three-month period, they anticipate the rate to decline further below the current level.
In the 24-hour period, when the USD was at 6.6950, UOB indicated that the price movements were likely part of a range-trading phase between 6.6900 and 6.7000. The current price action has softened in tone. Today, the USD might dip below 6.6900, but it remains unclear whether it can sustain a position under this level. Nevertheless, the next significant support at 6.6800 is not expected to be jeopardized. On the upside, resistance is located at 6.6990.
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