Further consolidation amidst a mixed outlook remains well in place for USD/CNH in the next weeks, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected USD to ‘consolidate and trade between 6.4630 and 6.4830 yesterday’. USD subsequently traded within a 6.4708/6.4852 range before settling slightly higher at 6.4835 (+0.19%). The underlying tone has firmed somewhat and USD could edge higher to 6.4950 (minor resistance is at 6.4900). A sustained rise above this level appears unlikely. Support is at 6.4750 followed by 6.4680.”
Next 1-3 weeks: “We continue to hold the same view as from Tuesday (24 Aug, spot at 6.4790). As highlighted, the outlook is mixed and USD could trade between 6.4600 and 6.5050 for a period of time. Looking ahead, the downside risk appears to be greater but USD has to close below the major support at 6.4500 before a sustained decline can be expected.”
