Chinese Yuan: Upside bias toward 6.7600 against US Dollar – UOB
United Overseas Bank’s Quek Ser Leang and Lee Sue Ann expect USD/CNH to remain in a narrow consolidation between 6.7680 and 6.7780 intraday after a lacklustre session. Over the next one to three weeks, Quek Ser Leang maintains a downside bias, still seeing scope for a move toward 6.7600 as long as 6.7820 strong resistance caps. Medium‑term, a sustained recovery would require a break above the 6.8430 21‑week EMA.
Dollar-Offshore Yuan retains mild downside bias
"24-HOUR VIEW: Yesterday, we expected USD to “consolidate between 6.7635 and 6.7755.” USD subsequently traded within a range of 6.7680/6.7763. The price action provides no fresh clues. Today, we expect USD to trade between 6.7680 and 6.7780."
"1-3 WEEKS VIEW: The following excerpt from our update yesterday remains valid: “Our most recent narrative was from last Wednesday (15 Jul, spot at 6.7720), when we highlighted that “downward momentum is increasing, and USD is likely to trade with a downside bias toward 6.7600.” While the downside bias remains intact as USD eked out a fresh low of 6.7635 yesterday, downward momentum has slowed somewhat. That said, there is still a chance for USD to decline to 6.7600 as long as 6.7820 (no change in ‘strong resistance’ level) is not breached.”"
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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