6.6640: Chinese Yuan edges towards this level against US Dollar – UOB

6.6700 is the level USD/CNH could briefly slip below intraday. United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann see risks tilted lower as the pair drifts down, but do not anticipate a sustained break. Provided strong resistance at 6.6850 holds, they expect scope for a gradual decline towards 6.6640 over the next one to three weeks. Their broader 1–3 month outlook remains biased to the downside while USD/CNH stays below the cloud near 6.7815.

Offshore Yuan maintains modest appreciation bias

"24-HOUR VIEW: We indicated yesterday that USD “could dip below 6.6720 and test 6.6700.” However, we pointed out that “a continued decline below 6.6700 is unlikely.” We noted that “resistance is at 6.6805.” Our view did not materialise, as USD rose to 6.6795, and then dropped back down to close largely unchanged at 6.6750 (+0.01%). The slight increase in downward momentum suggests USD could dip below 6.6700 today. Based on the prevailing momentum, a sustained decline below this level is unlikely. On the upside, resistance is at 6.6780."

"1-3 WEEKS VIEW: Our update from yesterday (21 Oct, spot at 6.6750) still stands. As highlighted, “as long as USD holds below 6.6850 (‘strong resistance’ level), it could decline gradually toward 6.6640.” A breach of the ‘strong resistance’ would indicate that the downward pressure from early last week has faded."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)