USD/CNH: Further rangebound likely – UOB

USD/CNH is now expected to trade between 6.3650 and 6.4050 for the time being, suggested FX Strategists at UOB Group

Key Quotes

24-hour view: “Our expectation for USD to ‘trade between 6.3900 and 6.4050’ yesterday was incorrect as it dropped to 6.3825. Downward momentum has improved and USD could weaken further to 6.3750. For today, the next support at 6.3700 is unlikely to come into the picture. Resistance is at 6.3900 followed by 6.3950.”

Next 1-3 weeks: “We highlighted yesterday (09 Jun, spot at 6.3970) that the bias is for USD to edge higher. We added, a break of 6.3750 would indicate that the current mild upward pressure has eased. While 6.3750 is still intact, shorter-term momentum has more or less dissipated and USD is unlikely to strengthen. From here, USD is more likely to trade sideways within a range of 6.3650/6.4050.”