There is still scope for USD/CNH to extend the current consolidation in the next weeks, according to FX Strategists at UOB Group.
24-hour view: “USD traded between 6.9716 and 6.9915 yesterday, narrower than our expected sideways trading range of 6.9650/6.9980. The price action offers not much clues and USD could trade between 6.9650 and 6.9980 for now.”
Next 1-3 weeks: “USD touched 7.0230 early last week and since then, it traded sideways in a relatively choppy manner. The price action is in line with our view from last Thursday (06 Feb, spot at 6.9780) wherein USD is expected to “trade sideways for now. Momentum indicators are mostly neutral and from here, we continue to expect USD to trade within a 6.9500/7.0230 range.”
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