FX Strategists at UOB Group noted the outlook for USD/CNH still looks negative in the near-term.
Key Quotes
24-hour view: “USD closed little changed at 4.5019 last Thursday (6.5019, -0.07%) but weakened after opening this morning. Downward momentum has improved and the risk is for USD to weaken further. That said, the major support at 6.4720 is likely out of reach. Resistance is at 6.5030 followed by 6.5100.”
Next 1-3 weeks: “USD dipped to a fresh low of 6.4880 last Thursday (31 Dec). Downward momentum is improving and USD could weaken further to 6.4720. A break of this level would open up the way for further weakness towards 6.4450. All in, the outlook for USD is negative unless it can move above the ‘strong resistance’ level at 6.5250.”
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