FX Strategists at UOB Group forecast USD/CNH to keep the 6.6850-6.7850 range well in place in the next weeks.
Key Quotes
24-hour view: “Our expectation for USD to trade sideways was wrong as it dropped to a low of 6.7040 before closing on a soft note at 6.7136 (-0.33%). Downward momentum has improved, albeit not by all that much. From here, USD could weaken further but any decline is likely limited to a test of the support at 6.6950 (minor support is at 6.7040). Resistance is at 6.7240 followed by 6.7350.”
Next 1-3 weeks: “USD plunged to a low of 6.6788 last Friday (09 Oct) before staging a dramatic turnaround on Monday. The sharp bounce coupled with break of strong resistance levels suggests that a short-term bottom is in place. The current movement is viewed as the early stages of a consolidation phase. From here, USD could trade between 6.6850 and 6.7850 for a period of time.”
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