USD/CNH: Further up comes 6.6300 – UOB

Pablo Piovano FXStreet

Extra gains in USD/CNH could see the 6.6300 level retested in the next weeks, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the strong rally over the past few days is ready to take a breather’ and we expected USD to ‘trade sideways within a range of 6.5500/6.6000’. USD subsequently traded between 6.5448 and 6.5985. We continue to expect USD to trade sideways even though the slightly firmed underlying tone suggests a higher range of 6.5650/6.6050.”

Next 1-3 weeks: “Our update from yesterday (26 Apr, spot at 6.5700) still stands. As highlighted, overbought shorter-term conditions could lead to 1 to 2 days of consolidation first but USD is likely to head higher later on. The next resistance above 6.6090 is at 6.6300. On the downside, a breach of 6.5300 (‘strong support’ level was at 6.4900 yesterday) would indicate that the strong phase in USD that started late last week has run its course.”

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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