FX Strategists at UOB Group see USD/CNH edging higher to the 6.5180 level ahead of 6.5300 in the short-term horizon.
Key Quotes
24-hour view: “We expected USD to strengthen last Friday, but we were of the view that ‘6.5180 is unlikely to come into the picture’. USD subsequently rose to 6.5104 before easing off quickly. Waning upward momentum coupled overbought conditions suggest that USD has moved into a consolidation phase. For today, USD is likely to trade sideways within a 6.4880/6.5050.”
Next 1-3 weeks: “Our update from last Friday (20 Aug, spot at 6.4985) still stands. As highlighted, USD is ready to head higher and the resistance levels are at 6.5180 and 6.5300. USD subsequently rose to 6.5104 before pulling back. While shorter-term upward momentum has eased somewhat, only a break of 6.4800 (no change in ‘strong support’ level) would indicate that USD is not ready to head higher.”
