Chinese Yuan: Uptrend eyes breakout 6.7000 against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann keep a negative stance on USD/CNH around 6.7060, though recent price action has been confined to 6.7033–6.7074. They see current moves as range trading between 6.7030 and 6.7100 intraday. Over 1–3 weeks, they highlight that a break and hold below 6.7000 could open further downside toward 6.6900, while resistance is capped at 6.7160.

USD/CNH downside bias points toward 6.6900

"24-HOUR VIEW: We highlighted yesterday that “the bias for USD is on the downside,” but we stated that “any decline is likely part of a lower range of 6.7020/6.7100.” USD then traded within a range of 6.7033/6.7074 and closed unchanged at 6.7067. The price movements are likely part of a range-trading phase. Today, USD could trade between 6.7030 and 6.7100."

"1-3 WEEKS VIEW: We have been holding a negative USD stance since the start of the month. In our most recent narrative from Monday (07 Sep, spot at 6.7070), we noted that “downward momentum has increased further, and if USD breaks and holds below 6.7000, it could decline further to 6.6900.” Although USD has not been able to make much headway on the downside, we will continue to hold the same view as long as 6.7160 (‘strong resistance’ previously at 6.7200) is not breached."

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