In opinion of FX Strategists at UOB Group, USD/CNH could attempt to reach the 6.90 region in the next weeks.
Key Quotes
24-hour view: “Our expectation for USD to trade sideways was wrong as it lurched lower and plummeted to an overnight low of 6.9375. Downward momentum has picked and from here, USD is expected to weaken further to 6.9250. Resistance is at 6.9500 but the stronger level is at 6.9700.”
Next 1-3 weeks: “We expected the ‘pullback in USD to extend to 6.9400’ on Monday (02 Mar, spot at 6.9770). The anticipated weakness occurred at a faster pace than anticipated as USD plummeted to an overnight low of 6.9375 yesterday. Downward has improved and from here, USD is expected to weaken further to 6.9000. On the upside, the ‘strong resistance’ level has moved to 6.9950 from 7.0100.”
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