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USD/CNH set for near-term tests near 6.7420, UOB says
UOB expects gradual downside toward 6.7300 over 1 to 3 weeks if resistance at 6.7640 holds, while sustained recovery would require a break above the 21-week EMA at 6.8430.
United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann said USD/CNH is trading with a soft underlying tone, leaving room for the US dollar to test support near 6.7420 in the short term. They also cautioned that a sustained break lower below 6.7420 looks unlikely.
Over a 1 to 3 week horizon, UOB expects gradual downside toward 6.7300, but only if resistance at 6.7640 holds. In their 1 to 3 month outlook, they flagged tentative upside momentum that would need confirmation through a break above the 21-week EMA at 6.8430.
FXStreet also reported that the currency traded in a tight range around 6.7450 to 6.7500, closing largely unchanged at 6.7482, as underlying tone remained soft. The analysts pointed to upside resistance at 6.7550.