USD/CNH Range-Bound Trading Expected by UOB Analysts

USD/CNH has been trading in a tight range for the near term, according to UOB's analysts Quek Ser Leang and Lee Sue Ann. They expect this range to continue between 6.7430 and 6.7530.

In their analysis of the currency pair, they note that any drift lower toward 6.7300 would be a continuation of the current trend unless the resistance level at 6.7580 breaks. This means USD/CNH could edge lower toward 6.7300 over the coming weeks unless the market pushes through this resistance.

However, for a medium-term recovery to occur, the dollar needs to move above its 21-week EMA (Exponential Moving Average) at 6.8430. This would indicate a shift in momentum and potentially break the current range-bound trading.