If 6.4500 is cleared in the coming weeks, according to UOB Group FX Strategists, USD/CNH could be heading for 6.4300.
Observation for 24 hours: “Yesterday, we predicted that the dollar will ‘consolidate and trade inside a 6.4500/6.4750 band.’ While we were correct in our prediction of consolidation, the USD traded in a narrower range than projected (6.4569/6.4716). The USD may continue to stabilize due to the lack of new hints provided by the quiet price activity. Today’s expected range is 6.4530/6.4730.”
Within the next 1-3 weeks: “There isn’t anything to add to yesterday’s update (15 Jul, spot at 6.4600). As previously stated, downward momentum is gaining traction, and a daily close below 6.4500 would suggest that USD might fall below 6.4300. A break above 6.4850 (‘strong resistance’ level) on the upside would signal that the downside risk has passed.”/n
