Chinese Yuan: Strengthening toward 6.7300 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang sees USD/CNH trading slightly higher within a developing range, with intraday levels expected between 6.7500 and 6.7620. On a 1–3 week horizon, the pair could continue to edge lower toward 6.7300 as long as 6.7640 holds as strong resistance. Medium term, a sustained recovery requires a break above the 21-week EMA near 6.8430.

Short-term range, gradual decline toward 6.7300

"24-HOUR VIEW: When USD was at 6.7490 in the early Asian trade yesterday, we highlighted that “the current price movements appear to be part of a range-trading phase between 6.7420 and 6.7540.” However, USD traded in a higher range of 6.7467/6.7592. There has been a slight increase in upward momentum, but instead of a sustained advance, USD is more likely to trade between 6.7500 and 6.7620 today."

"1-3 WEEKS VIEW: Yesterday (03 Aug, spot at 6.7490), we highlighted that while USD edged lower last week, “there has been no clear increase in downward momentum.” However, we were of the view that USD “could continue to edge lower toward 6.7300 as long as 6.7640 (‘strong resistance’ level) is not breached.” Our view remains unchanged. "

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