UOB Analysts See Gradual Downside for USD/CNH
According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Chinese Yuan is currently trading in a soft underlying tone against the US Dollar. The analysts note that USD/CNH has been trading within a tight range of 6.7450/6.7500, closing largely unchanged at 6.7482 (+0.01%) over the past 24 hours.
In their analysis, they point out that despite the quiet price action, there is still a chance for USD to test support levels near 6.7420 in the short term. However, a sustained break lower is seen as unlikely.
Over the 1-3 week horizon, UOB analysts expect gradual downside toward 6.7300, provided resistance at 6.7640 holds. They emphasize that this view remains unchanged from their previous narrative on Monday (03 Aug), where they highlighted that USD had edged lower last week but showed no clear increase in downward momentum.
On a longer-term view, the analysts see tentative upward momentum in the coming months, which would require a break above the 21-week EMA at 6.8430 to confirm a sustained recovery.