USD/CNH: There is still room for a drop to 6.6985 – UOB

Pablo Piovano FXStreet

Another probable visit to the 6.6985 level still remains in the pipeline in USD/CNH, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “We expected USD to ‘weaken further’ last Friday. However, after dipping to a low of 6.7226, USD rebounded strongly to 6.7720 before pulling back to close at 6.7555. The price movements are likely part of a broad consolidation range and USD is expected to trade between 6.7300 and 6.7700 today.”

Next 1-3 weeks: “Last Friday (27 Jan, spot at 6.7310), we highlighted that downward momentum is building quickly and we expect USD to weaken toward the month-to-date low near 6.6985. While there is no change in our view for now, the rebound to a high of 6.7720 has dented the downward momentum. Overall, only a breach of 6.7760 (‘strong resistance’ level) would indicate that the build-up in downward momentum has faded.”

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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