Yuan Trades with Soft Tone, Tests Support Near 6.7420

According to analysts at United Overseas Bank (UOB), the Chinese Yuan is trading with a soft underlying tone, suggesting that it may test support levels near 6.7420 against the US Dollar in the short term.

The analysts, Quek Ser Leang and Lee Sue Ann, note that while there has been no clear increase in downward momentum, they still expect gradual downside toward 6.7300 over the 1-3 week horizon, provided resistance at 6.7640 holds.

However, on a 1-3 month view, they see tentative upward momentum for the Dollar, which would require a break above the 21-week EMA at 6.8430 to confirm a sustained recovery.