Further rangebound on the cards for USD/CNH – UOB

Pablo Piovano FXStreet

USD/CNH is likely to trade within the 6.4730-6.5360 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Last Friday, we held the view that USD ‘could edge higher to 6.5250’. Our expectation did not quite materialize as it traded in a relatively quiet manner between 6.5040 and 6.5220. The underlying tone still appears to be a tad positive and there is still scope for USD to edge higher to 6.5250. The next resistance at 6.5360 is not expected to come into the picture. On the downside, a break of 6.4950 would indicate that the current mild upward pressure has eased (minor support is at 6.5020).”

Next 1-3 weeks: “There is no change to our latest narrative from last Monday (15 Mar, spot at 6.4970). As highlighted, the outlook is mixed and USD is likely to trade between 6.4730 and 6.5360 for a period of time.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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