UOB Group’s FX Strategists see USD/CNH trading within the 6.4730-6.5360 range in the next weeks.
24-hour view: “Our expectation for USD to ‘trade between 6.5050 and 6.5400’ was incorrect as it fell to 6.4940. Despite the relatively sharp decline, downward momentum has not improved by much. However, there is room for USD to edge lower to 6.4870. Any weakness is not expected to challenge the next support at 6.4730. Resistance is at 6.5130 followed by 6.5280.”
Next 1-3 weeks: “We highlighted yesterday (10 Mar, spot at 6.5220) that ‘a break of 6.5000 would indicate that the 3-week positive phase has come to an end’. USD subsequently breached 6.5000 as it fell to 6.4940. Upward momentum has dissipated and USD has likely moved into a consolidation phase. From here, USD could trade between 6.4730 and 6.5360 for a period of time.”