USD/CNH sticks to the consolidative phase – UOB

USD/CNH is predicted to keep the trade within 6.7400-6.8000 in the next few weeks comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “USD traded between 6.7574 and 6.7889 before closing at 6.7678 (-0.31%). The underlying tone has weakened somewhat and USD is likely to edge lower to 6.7550. The major support is at 6.7400 is unlikely to come under threat. Resistance is at 6.7780, followed by 6.7890.”

Next 1-3 weeks: “Our latest narrative was from 18 Jan (spot at 6.7755) where USD “has entered a consolidation phase and will likely trade between 6.7205 and 6.8550 for the time being”. Our view for consolidation is not wrong even though USD traded within a narrower range than expected. We continue to expect USD to consolidate but the decreased volatility suggests it is likely to trade within a narrower range of 6.7400/6.8000.”