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Yuan steadies after sharper USD/CNH drop, UOB flags consolidation

UOB expects USD/CNH to trade in a 6.7700 to 6.8100 range over the next 1 to 3 weeks, while a sustained recovery likely needs a break above the 21-week EMA at 6.8430.

Reported · Written up by our desk · Major Pairs

UOB analysts Quek Ser Leang and Lee Sue Ann said the USD/CNH move lower that took the pair to around 6.7766 appears to have stabilized, with the market rebounding and shifting into consolidation.

They project intraday trading between 6.7780 and 6.7920, pointing to a stabilization after the sharper-than-expected decline.

On the multi week horizon, UOB said recovery momentum remains tentative unless USD/CNH breaks above the 21-week EMA at 6.8430 on a sustained basis.

For the next 1 to 3 weeks, the bank expects range trading between 6.7700 and 6.8100.

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