USD/CNH: Room for extra gains near term – UOB

USD/CNH faces further upside on a close above 6.4105 in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for USD to ‘breach 6.4000’ did not materialize as it popped to a high of 6.3982 before easing off to close little changed at 6.3873 (+0.04%). The current price actions appear to be part of a consolidation and USD is likely to trade sideways between 6.3790 and 6.3950 for today.”

Next 1-3 weeks: “Yesterday (28 Mar, spot at 6.3850), we highlighted that while upward momentum is beginning to build again, USD has to break and close above 6.4105 before a sustained advance is likely. The chance for USD to close above 6.4105 would remain intact as long as USD does not move below 6.3750 within these 1 to 2 days. There is no change in our view for now.”