USD/CNH now targets 6.4920 – UOB

UOB Group’s FX Strategists see USD/CNH shifting its focus to the 6.4920 level in the short-term horizon.

Key Quotes

24-hour view: “Our expectation for USD to ‘move to 6.4800 first before easing’ did not materialize it traded between 6.4426 and 6.4680 before closing little changed. The current movement is viewed as part of a consolidation and for today, USD is likely to trade sideways between 6.4400 and 6.4700.”

Next 1-3 weeks: “Yesterday (18 Feb, spot at 6.4320), we highlighted that ‘6.4500 is a solid resistance and USD has to break this level before further gains can be expected’. We did not quite anticipate the ease by which USD blew past 6.4500 and surged to 6.4715. The break of the solid resistance coupled with improvement in momentum suggests USD could continue to advance in the coming days. The next resistance level of note is at 6.4920. Overall, the outlook for USD is deemed to be positive as long as it does not move below 6.4200.”