USD/CNH is likely to keep the rangebound theme for the time being, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectation for USD to ‘edge higher to 6.9800’ did not materialize as it touched 6.9696 before ending the day little changed at 6.9689 (+0.08%). However, USD extended its advance after NY close and from here, USD is expected to strengthen towards 7.0000. For today, a sustained rise above this level appears unlikely. Support is at 6.9620 followed by 6.9500.”
Next 1-3 weeks: “The rebound from Monday’s (09 Mar) low of 6.9050 has been faster and more robust than expected. While our ‘strong resistance’ at 6.9700 is still intact (overnight high of 6.9668), the price action indicates that the weak phase that started in late February has found a short-term bottom at 6.9050. From here, USD is deemed to have moved into a consolidation phase and is expected to trade sideways for a period, likely between 6.9200 and 7.0000.”
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