USD/CNH is seen keeping the 6.4730-6.5360 range in the next weeks, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “Yesterday, we held the view that USD ‘is likely to consolidate and trade between 6.4850 and 6.5100’. USD subsequently rose to 6.5103 before plunging to 6.4850 during NY hours. The swift and sharp drop appears to be overdone and while USD could dip below 6.4850, it is unlikely to challenge the next support at 6.4730. Resistance is at 6.5000 followed 6.5080.”
Next 1-3 weeks: “Last Thursday (11 Mar, spot at 6.5020), we highlighted that the recent positive phase has come to an end and we expected USD to ‘trade between 6.4730 and 6.5360’. USD subsequently dropped to 6.4769 before rebounding strongly on Friday. The outlook is mixed and for now, we continue to hold the same view wherein USD is likely to trade between 6.4730 and 6.5360 for a period of time.”
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