Chinese Yuan: Gradual bullish bias against US Dollar – UOB

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann maintain a negative stance on USD/CNH, expecting the Dollar to edge lower within a defined range. Intraday, they see only mild downside momentum, limiting losses. Over 1–3 weeks and months, they project a gradual decline toward 6.6640 while the pair stays below the cloud near 6.7815.

Negative Dollar view toward 6.6640

"24-HOUR VIEW: We indicated last Friday that USD “could trade between 6.6700 and 6.6760.” However, USD edged down to a low of 6.6688. Downward momentum has increased slightly. Today, USD could continue to edge lower, but based on the mild momentum, any decline is unlikely to reach 6.6640 today. Resistance is at 6.6740."

"1-3 WEEKS VIEW: We have been holding a negative USD view since the middle of the month. In our most recent narrative from last Wednesday (21 Oct, spot at 6.6750), we highlighted that USD “could decline gradually toward 6.6640.” There is no change in our view. On the upside, a breach of 6.6780 (‘strong resistance’ level previously at 6.6850) would indicate USD is not declining further."

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