UOB Group’s FX Strategists noted a move to 6.5000 in USD/CNH still remains on the cards.
Key Quotes
24-hour view: “USD traded between 6.4800 and 6.4930 yesterday, narrower than our expected consolidation range of 6.4780/6.4980. The underlying tone has firmed and the bias is tilted to the upside. That said, any advance is unlikely to break the major resistance at 6.5000. Support is at 6.4820 followed by 6.4780.”
Next 1-3 weeks: “There is no change in our view from yesterday (18 Aug, spot at 6.4885). As highlighted, upward momentum has improved slightly and the chance for USD to close above 6.5000 has increased. The next resistance above 6.5000 is at 6.5180 followed by 6.5300. On the downside, a break of 6.4650 (no change in ‘strong support’ level) would indicate that USD is not ready to head higher just yet.”
