USD/CNH Stuck in Range as UOB Analysts Expect Continued Volatility

Analysts at United Overseas Bank (UOB) are expecting the Chinese Yuan to remain range-bound against the US Dollar. The pair, USD/CNH, has seen significant volatility in recent days, with a sharp rebound followed by a drop. According to UOB analysts Quek Ser Leang and Lee Sue Ann, downward momentum has increased but remains insufficient to signal a sustained decline.

The 24-hour view suggests that the US Dollar will trade within a defined intraday range of 6.7120-6.7250. However, it's worth noting that key technical resistance needs to be broken for a longer-term recovery to occur.

Looking ahead to the next 1-3 weeks, UOB analysts still expect the US Dollar to stay contained within a range of 6.7050-6.7300. While downward momentum has increased, it's not sufficient to indicate a continued decline, and the pair is likely to edge lower but remain within this range.