Chinese Yuan: Neutral within tight onshore band – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/CNH to trade quietly between 6.7920 and 6.8060 intraday after recent moves failed to generate fresh momentum. On a 1–3 week horizon, the bank holds a neutral view, seeing current price action as part of a range between 6.7820 and 6.8220. Over 1–3 months, the rebound still has scope to break above 6.9720, facing strong resistance near 6.9960.

Dollar-Yuan stuck in range-trading phase

"24-HOUR VIEW: USD dropped to a low of 6.7981 two days ago. Yesterday, when USD was at 6.8010, we stated that “while there has been an increase in downward momentum, it is not sufficient to indicate a continued decline.” We also indicated that USD “is more likely to trade in a lower range of 6.7910/6.8110.” USD then traded within a narrower range than expected (6.7964/6.8080), closing marginally lower by 0.02% (6.8002). The price action provides no fresh clues. Today, USD could trade between 6.7920 and 6.8060."

"1-3 WEEKS VIEW: We revised our view to neutral yesterday (21 May, spot at 6.8010). We highlighted that “the current price movements are likely part of a range-trading phase between 6.7820 and 6.8220.” There is no change in our view. "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

FXStreet

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