Chinese Yuan: Mild gains likely against US Dollar while support holds - UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann see slightly stronger downward momentum in USD/CNH after the pair eased from recent highs. For the next 24 hours, they expect the Dollar to edge lower but stay above strong support at 6.6530, with resistance at 6.6720. On a 1–3 week view, a close above 6.6855 is required to confirm a broader recovery.

Dollar drift lower capped by key support

"24-HOUR VIEW: After USD popped to a high of 6.6855 and pulled back two days ago, we highlighted yesterday that “the pullback has scope to extend, but with no clear increase in downward momentum, USD is likely to stay within a range of 6.6620/6.6800.” USD then edged lower to a low of 6.6635. There has been a slight increase in downward momentum, and USD could continue to edge lower. That said, any decline is unlikely to break the strong support at 6.6530. Resistance is at 6.6720."

"1-3 WEEKS VIEW: We continue to hold the same view as yesterday (05 Nov, spot at 6.6720). As highlighted, “for USD to continue to recover, it must close above 6.6855.” On the downside, a breach of the ‘strong support’ at 6.6530 (no change in level) would indicate that USD is not recovering further. Looking ahead, if USD were to close above 6.6855, the next level to watch is 6.6940."

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