Chinese Yuan: Range trading after weakness fades against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang reports USD/CNH is consolidating after a prior decline to 6.7865, with prices oscillating between 6.7911 and 6.8025 and closing at 6.7948. He expects intraday action to remain confined to 6.7860–6.7990. Over 1–3 weeks, recent Dollar strength is seen as having ended, with the pair likely to trade between 6.7750 and 6.8080, while medium-term recovery requires a break above the 21‑week EMA at 6.8430.

Off highs and stuck in a band

"24-HOUR VIEW: Two days ago, USD dropped to 6.7865 and then rebounded. When it was at 6.7920 yesterday, we highlighted that “the rebound from oversold conditions suggests USD is unlikely to weaken much further,” and we expected USD to “trade between 6.7860 and 6.7990.” USD then traded within a range of 6.7911/6.8025, closing little changed at 6.7948 (+0.05%). The price action provides no fresh clues, and we continue to expect USD to trade between 6.7860 and 6.7990."

"1-3 WEEKS VIEW: Yesterday (01 Jul, spot at 6.7920), we highlighted that the recent USD “strength has come to an end.” We also highlighted that USD “is likely to trade in a range between 6.7750 and 6.8080.” We continue to hold the same view."

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