According to FX Strategists at UOB Group, USD/CNH could be headed for 6.4300 in case 6.4500 is cleared in the next weeks.
Key Quotes
24-hour view: “We expected USD to ‘consolidate and trade within a 6.4500/6.4750 range’ yesterday. While our view for consolidation was not wrong, USD traded within a narrower range than expected (6.4569/6.4716). The quiet price actions offer no fresh clues and USD could continue to consolidate. Expected range for today, 6.4530/6.4730.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (15 Jul, spot at 6.4600). As highlighted, downward momentum is beginning to build and a daily closing below 6.4500 would indicate that USD could head lower towards 6.4300. On the upside, a break of 6.4850 (‘strong resistance’ level) would indicate that the downside risk has dissipated.”