USD/CNH Range Trade Persists, Downside Risks Toward 6.7300 – UOB
United Overseas Bank analysts see USD/CNH trapped in a narrow range near term, with flat momentum. Over the next one to three weeks, they expect the dollar to edge lower toward 6.7300.
Near-term, USD/CNH is likely to remain in a tight intraday range as momentum indicators are flat, according to UOB strategists Quek Ser Leang and Lee Sue Ann. They do not anticipate a breakout in either direction in the immediate term.
Looking out over the next one to three weeks, the analysts maintain that the dollar has scope to weaken gradually toward the 6.7300 level. Resistance levels have shifted lower, reinforcing the downside bias.
The offshore yuan thus faces limited downside against the greenback, with the path of least resistance tilted to the upside for the Chinese currency.
Source: FXStreet Forex News