USD/CNH is currently expected to trade around the 6.4480-6.4850 range in the coming weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “Our prediction that the USD will ‘trade between 6.4670 and 6.4810’ was inaccurate, as it fell to 6.4596 before rebounding to 6.4659. (-0.09 percent ). The downward momentum has improved a tad, and the USD could go as low as 6.4560 before rebounding. The major support level of 6.4480 is unlikely to be tested. A breach of 6.4740 (minor resistance at 6.4700) on the upside would imply that downward pressure has eased.”
Within the next 1-3 weeks: “‘The prospect for USD to climb decisively above 6.4950 has lessened significantly,’ we said yesterday (05 Jul, spot at 6.4730). ‘Only a break of 6.4590 would show that the upside danger has disappeared,’ we added. USD plummeted to within a few pips of 6.4590 shortly after (low of 6.4596). While the 6.4590 level remains in place, upward pressure has faded, and USD is projected to stabilize and trade between 6.4480 to 6.4850 from here.”/n
