USD/CNH: Next on the downside comes 6.6500 – UOB

FX Strategists at UOB Group Quek Ser Leang and Peter Chia suggested USD/CNH could grind lower to the 6.6500 level in the short-term horizon.

Key Quotes

24-hour view: “USD dropped sharply to 6.6724 last Friday before rebounding to close at 6.6975 (-0.46%). The rebound amidst oversold conditions suggests that USD is likely to consolidate and trade sideways for today, expected to be between 6.6720 and 6.7150.”

Next 1-3 weeks: “Our latest narrative was from last Wednesday (18 May, spot at 6.7470) where we indicated that USD is in the early stages of a pullback. We highlighted that support is at 6.7000 followed by 6.6700. USD dropped to 6.6724 on Friday before rebounding. Despite the rebound, it is premature to expect an end to the pullback. As long as 6.7550 (‘strong resistance’ level) is not breached, USD could break 6.6700. The next support is at 6.6500.”