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USD/CNH bias tilts lower as UOB targets 6.7000
UOB says a sustained break below 6.7200 could extend the move toward 6.7000, with 6.7150 expected to hold near term.
United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann keep a negative stance on USD/CNH, saying the underlying tone has softened even though recent price action has been relatively quiet.
In the near term, they expect a modest drift lower, pointing to 6.7150 as key support. They also flag resistance at 6.7240, followed by 6.7280, suggesting any downside could remain contained while those levels hold.
Over the next one to three weeks, UOB notes that a sustained break below 6.7200 would open the way toward 6.7000, provided resistance at 6.7340 does not get breached. They add that USD traded between 6.7181 and 6.7255 before closing marginally higher at 6.7220, after dipping below 6.7200 without closing below it.
UOB says it will maintain the same view as long as 6.7340 stays intact, with the prior focus on the 6.7150/6.7240 lower range continuing to frame expectations.