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USD/CNH downside bias persists, with 6.7000 eyed if 6.7200 breaks
UOB expects any near-term weakness in USD/CNH to stay capped between 6.7150 and 6.7240, but a sustained move below 6.7200 would raise the odds of a move toward 6.7000.
United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann maintained a downside bias on USD/CNH after the pair dipped to 6.7180 and closed near 6.7210, warning that market momentum would be key to follow-through.
In the near term, they expect further USD weakness to remain rangebound, with weakness likely limited within 6.7150 to 6.7240 and not breaking clearly below 6.7150.
On a one to three week horizon, they cautioned that a sustained move under 6.7200 could open the door to 6.7000, noting that they would keep the negative view as long as 6.7340, their stated strong resistance level, is not breached.
They also cited that USD recently closed little changed at 6.7213, and described the broader setup as still tilted to the downside based on prevailing momentum.