USD/CNH is expected to stick to the rangebound theme within the 6.9300/6.9800 area in the next weeks, according to FX Strategists at UOB Group.
24-hour view: USD did not do much yesterday as it traded between 6.9582 and 9.9742 before closing little changed at 6.9605 (-0.08%). The price action is viewed as part of an on-going consolidation phase and USD could continue to trade sideways for today, albeit at a lower range of 6.9500/6.9700.”
Next 1-3 weeks: “Our view from last Thursday (06 Aug, spot at 6.9400) wherein USD ‘is in a negative phase and break of 6.9300 critical support could lead to a quick move to 6.9050’ was proven wrong it breached the ‘strong resistance’ level at 6.9730 last Friday (high of 6.9763). While USD could still weaken further out, for the next 1 to 2 weeks, USD is likely to consolidate and trade sideways within a 6.9300/6.9800 range.”