Quek Ser Leang and Lee Sue Ann of United Overseas Bank (UOB) expect USD/CNH to trade calmly on the day in the 6.7920-6.8060 range after recent moves failed to provide fresh momentum. Over a 1-3 week horizon, the bank maintains a neutral stance, seeing current price action in the range of 6.7820 to 6.8220. The rebound still has a chance to break above 6.9720 in 1-3 months, facing robust resistance near 6.9960.
Dollar-Yuan stuck in swing trading phase
“24-HOUR VIEW: Two days ago, the USD fell to a low of 6.7981. Yesterday, when the USD was at 6.8010, we stated that “while there has been an increase in downward momentum, it is not enough to point to a further decline.” We also indicated that the USD is “more likely to trade in the lower 6.7910/6.8110 range.” The USD then traded in a tighter range than expected (6.7964/6.8080), closing marginally lower by 0.02% (6.8002). The price action does not provide any fresh clues. Today, the USD rate could fluctuate between 6.7920 and 6.8060.”
“1-3 WEEK OVERVIEW: We changed our view to neutral yesterday (May 21, spot at 6.8010). We emphasized that “the current price movements are likely part of a swing trading phase between 6.7820 and 6.8220.” In our opinion, there is no change. “
(This article was created with the aid of an artificial intelligence tool and has been reviewed by an editor.)
