USD/CNH sticks to the consolidative theme – UOB

Pablo Piovano FXStreet

Further range bound trading within 6.6600-6.7400 is predicted in USD/CNH in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is scope for USD to weaken but a sustained decline below 6.6700 is unlikely’. USD subsequently dropped to 6.6720 before rebounding to close little changed at 6.6955 (+0.06%). The underlying tone has firmed somewhat and USD could edge higher but 6.7200 is unlikely to come into the picture. Support is at 6.6860 followed by 6.6750.”

Next 1-3 weeks: “Our update from Monday (20 Jun, spot at 6.7080) still stands. As highlighted, the recent build-up in downward momentum has eased and USD is likely to trade between 6.6600 and 6.7400 for now. Looking ahead, a clear break of 6.6600 would indicate that USD is ready to head lower towards 6.6300.”

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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