Chinese Yuan: 6.6450 in sight as uptrend against US Dollar continues – UOB

Downward pressure continues to weigh on USD/CNH, keeping United Overseas Bank strategists Quek Ser Leang and Lee Sue negative on the pair as it gradually moves lower. Their short-term outlook allows for a test of nearby support. Over both 1–3 weeks and 1–3 months, they favour further gradual declines, provided the pair remains below key resistance levels and cloud boundaries.

Can Offshore Yuan strength keep the Dollar in check?

"24-HOUR VIEW: We expected USD to “edge lower” yesterday, but we pointed out that “slowing downward momentum suggests any decline should stay within a 6.6575/6.6655 range.” USD declined more than expected to 6.6559 before settling at 6.6564 (-0.07%). The downward pressure remains intact, and today, USD could edge lower and test 6.6520. A continued decline below this level is unlikely. Resistance is at 6.6605."

"1-3 WEEKS VIEW: Following our negative USD view from the middle of the month, we highlighted two days ago (28 Oct, spot at 6.6655) that “there is a chance for USD to test 6.6550.” Yesterday, USD declined to a low of 6.6559. While oversold, the decline has not stabilised, and USD could continue to edge lower. The next level to watch is 6.6450. On the upside, a breach of 6.6640 (‘strong resistance’ level previously at 6.6700) would indicate that USD is not declining further."

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