USD/CNH is projected to accelerate gains if the 6.5000 barrier is cleared in the short term, according to UOB Group FX Strategists.
Observation for 24 hours: “Yesterday, the USD traded between 6.4670 and 6.4820, a tighter range than our forecast of 6.4660/6.4870. Even if the underlying tone has slightly firmed, the action is still seen as part of a consolidation, suggesting a higher trading range of 6.4700/6.4900.”
Within the next 1-3 weeks: “The opinion from Monday (12 July, 6.4810) is still valid. As previously said, the recent action is considered to be part of a consolidation phase, and the USD may trade in the 6.4600/6.5000 region for some time. Only if the USD closes over 6.5000 will we see a sustained rally.”/n
