Chinese Yuan: Upside bias toward 6.7600 against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann expect USD/CNH to remain in a narrow consolidation between 6.7680 and 6.7780 intraday after a lacklustre session. Over the next one to three weeks, Quek Ser Leang maintains a downside bias, still seeing scope for a move toward 6.7600 as long as 6.7820 strong resistance caps. Medium‑term, a sustained recovery would require a break above the 6.8430 21‑week EMA.

Dollar-Offshore Yuan retains mild downside bias

"24-HOUR VIEW: Yesterday, we expected USD to “consolidate between 6.7635 and 6.7755.” USD subsequently traded within a range of 6.7680/6.7763. The price action provides no fresh clues. Today, we expect USD to trade between 6.7680 and 6.7780."

"1-3 WEEKS VIEW: The following excerpt from our update yesterday remains valid: “Our most recent narrative was from last Wednesday (15 Jul, spot at 6.7720), when we highlighted that “downward momentum is increasing, and USD is likely to trade with a downside bias toward 6.7600.” While the downside bias remains intact as USD eked out a fresh low of 6.7635 yesterday, downward momentum has slowed somewhat. That said, there is still a chance for USD to decline to 6.7600 as long as 6.7820 (no change in ‘strong resistance’ level) is not breached.”"

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

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FXStreet Insights Team

FXStreet

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