USD/CNH has now likely moved into a consolidative phase, likely between 6.3700 and 6.4000 for the time being, commented FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected USD to ‘weaken to 6.3830’ yesterday. USD subsequently dropped to 6.3810, rebounded to 6.3950 before dropping back down again. Downward momentum is beginning to build and a break of 6.3800 would not be surprising. However, the next support at 6.3750 is likely out of reach for now. Resistance is at 6.3880 followed by 6.3930.”
Next 1-3 weeks: “Our latest narrative was from last Thursday (25 Nov, spot at 6.3940) where we held the view that mild upward pressure could lead to USD edging higher to 6.4070. USD has not been able to make any headway on the upside and the mild upward pressure has dissipated. The outlook is mixed and USD is likely to trade between 6.3700 and 6.4000 for now.”
