USD/CNH is projected to remain rangebound between 6.4300 and 6.4900, according to UOB Group FX Strategists.
Observation for 24 hours: “Last Friday, we expected the dollar to drop, but we believed that “any decline is unlikely to threaten the sturdy support at 6.4550.” The subsequent downturn outperformed our expectations, with the USD falling to 6.4531 before bouncing back. While the negative momentum has not improved significantly, the USD’s weakening has the potential to test the firm support at 6.4500 before stabilizing. 6.4660 is the first level of resistance, followed by 6.4750.”
Within the next 1-3 weeks: “Since the middle of the month, we’ve been expecting the dollar to gain. The probability of a short-term peak has increased, and a break of 6.4500 would signal that USD strength has run its course, according to our latest narrative from last Friday (25 June, spot at 6.4695). During the New York session, the dollar fell to 6.4531 before recovering marginally. While 6.4500 remains in place, upward momentum has slowed significantly, and last week’s 6.4946 is most likely a short-term high. However, it is too early to foresee a significant pullback. USD could move in a range of 6.4300/6.4900 for a while from here.”
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