USD/CNH: Further consolidation on the cards – UOB

USD/CNH is still seen within the 6.4400-6.5000 range in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “Last Friday, we expected USD to ‘trade sideways within a 6.4600/6.4800 range’. USD subsequently traded within a narrower and higher range than expected (6.4700/6.4864). The underlying tone has improved somewhat and we see chance for USD to test 6.4900. The major resistance at 6.5000 is unlikely to come into the picture. Support is at 6.4750 followed by 6.4700.”

Next 1-3 weeks: “Our latest narrative from last Thursday (22 Jul, spot at 6.4660) still stands. As highlighted, USD is still in a consolidation and it could trade sideways between 6.4400 and 6.5000 for now. Looking ahead, the upside risk appears to greater but USD has to close above 6.5000 before a sustained advance can be expected.”