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UOB Group’s FX Strategists suggested USD/CNH is expected to navigate between 6.4400 and 6.5200 in the next weeks.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘trade sideways within a 6.4500/6.4750 range’. USD subsequently traded between 6.4570 and 6.4780. The underlying tone has improved and the bias is on the upside. That said, any advance is unlikely to challenge the major resistance at 6.4900 (minor resistance is at 6.4840). Support is at 6.4600.”

Next 1-3 weeks: “Our latest narrative was from Monday (01 Feb, spot at 6.4500) where we indicated that ‘downward momentum is beginning to improve but USD has to close below 6.4400 before a move towards 6.4130 can be expected’. USD subsequently traded in a relatively quiet manner. The mild downward pressure has dissipated and USD is likely to trade sideways from here, expected to be between 6.4400 and 6.5200.”