USD/CNH Eyes 6.7300 as Resistance Holds
USD/CNH, the exchange rate between the US Dollar and Chinese Yuan, has been experiencing a gradual strengthening trend. According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the pair slipped to 6.7459 after failing to extend a modest bounce. The downward momentum has not increased much.
On an intraday basis, they see potential for the pair to test last week's low of 6.7420. However, a sustained break below this level is unlikely. On the upside, if the pair breaks above 6.7550, it would indicate that the current downward pressure has eased.
On a 1-3 week horizon, UOB analysts expect the pair to continue edging lower toward 6.7300 as long as the strong resistance level of 6.7640 holds. Their view remains unchanged from their previous report two days ago when they highlighted that USD/CNH could continue to edge lower despite no clear increase in downward momentum.