USD/CNH risks further decline near term – UOB

Pablo Piovano FXStreet

Extra weakness carries the potential to drag USD/CNH to the 6.7100 region in the next weeks, say FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘trade between 6.7200 and 6.7500’. USD subsequently dropped to 6.7216, rebounded to 6.7442 before closing at 6.7442 (+0.31%). We expect USD to trade sideways for today, likely within a range of 6.7350/6.7550.”

Next 1-3 weeks: “Our narrative from yesterday (11 Aug, spot at 6.7290) still stands. As highlighted, the rapid build-up in downward momentum suggests USD could weaken further to 6.7100. Only a break of 6.7650 (no change in ‘strong resistance’ level from yesterday) would indicate that USD is unlikely to weaken further.”

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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