In opinion of FX Strategists at UOB Group, USD/CNH is now expected to navigate within the 6.4100-6.4900 range in the next weeks.
24-hour view: “Our expectation for USD to ‘move lower to 6.4380’ did not work out as it rebounded from 6.4400 (overnight high of 6.4695). Despite the rebound, upward momentum has barely improved. For today, USD could edge higher but any advance is viewed as part of a 6.4500/6.4750 range (a sustained rise above 6.4750 is not expected).”
Next 1-3 weeks: “Two days ago (11 Jan, spot at 6.4850), we indicated that ‘near-term bias is tilted to the upside but odds for a rise above 6.5200 are not high’. The rapid manner by which USD cracked the ‘strong support’ at 6.4450 (overnight low of 6.4425) was not exactly expected. The outlook is mixed and from here, USD could trade between 6.4100 and 6.4900.”
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