Chinese Yuan: Range trade persists, downside risk intact against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes that USD/CNH remains confined to a tight range, with the Dollar expected to trade between 6.7940 and 6.8080 in the near term. He maintains a positive USD view over the 1–3 week horizon, as long as strong support at 6.7900 holds, and sees tentative upward momentum over 1–3 months, contingent on a break above the 21‑week EMA.

Dollar holds range with upside risk

"24-HOUR VIEW: Following last Friday’s price action, we noted yesterday that “there has been no shift in either downward or upward momentum,” and we expected USD to “trade between 6.7950 and 6.8100.” USD subsequently traded within a range of 6.7934/6.8073, closing littlechanged at 6.8003 (-0.06%). We continue to expect USD to trade in a range, most likely between 6.7940 and 6.8080."

"1-3 WEEKS VIEW: We have held a positive USD view since the middle of the month. Yesterday (29 Jun, spot at 6.8030), we pointed out that “while upward momentum has since eased, as long as the ‘strong support’ at 6.7900 (no change in level) is not breached, there is still a chance for USD to head toward 6.8300.” There is no change in our view. "

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