UOB Sees Yuan Trading in Narrow Range with Downside Bias

According to Quek Ser Leang and Lee Sue Ann from United Overseas Bank (UOB), the Chinese Yuan is expected to trade in a narrow consolidation range against the US Dollar. The pair, USD/CNH, is forecasted to remain between 6.7680 and 6.7780 intraday after a lackluster session. Despite this, Quek Ser Leang maintains a downside bias towards 6.7600, citing strong resistance at 6.7820 as the key factor preventing further decline.

The analysts from UOB expect USD/CNH to break above its 21-week Exponential Moving Average (EMA) of 6.8430 for a sustained recovery in the medium term. However, with the price action providing no fresh clues, the short-term outlook remains uncertain. The pair's downward momentum has slowed somewhat, but there is still scope for USD/CNH to decline to 6.7600 as long as 6.7820 remains unbreached.