USD/CNH: Upside mitigated below 6.8700 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted USD/CNH could see its upside momentum alleviated on a breach of the 6.8700 level.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways between 6.8900 and 6.9250’ last Friday. Our view was not wrong even though USD traded within a narrower range than expected (6.9004/6.9209). The underlying tone has improved and USD is likely to edge higher for today. However, a break of 6.9400 is unlikely (there is another resistance at 6.9325). Support is at 6.9120 followed by 6.9040.”

Next 1-3 weeks: “Our update from last Friday (02 Sep, spot at 6.9100) still stands. As highlighted, while upward momentum has waned somewhat, only a break of 6.8700 (no change in ‘strong support’ level from last Friday) would indicate that USD is not strengthening further. Looking ahead, resistance levels are at 6.9400 and 6.9600.”

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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