Chinese Yuan: Does the outlook favour gradual gains against US Dollar? – UOB

USD/CNH remains under downside pressure, with only modest intraday momentum expected to limit losses, according to United Overseas Bank’s Quek Ser Leang and Lee Sue Ann. The analysts retain a bearish view on the Dollar and expect it to drift lower within a defined range. Their outlook over 1–3 weeks and months points to a gradual fall towards 6.6640, provided the pair remains below the cloud near 6.7815.

Can Dollar Weakness Extend Toward 6.6640?

"24-HOUR VIEW: We indicated last Friday that USD “could trade between 6.6700 and 6.6760.” However, USD edged down to a low of 6.6688. Downward momentum has increased slightly. Today, USD could continue to edge lower, but based on the mild momentum, any decline is unlikely to reach 6.6640 today. Resistance is at 6.6740."

"1-3 WEEKS VIEW: We have been holding a negative USD view since the middle of the month. In our most recent narrative from last Wednesday (21 Oct, spot at 6.6750), we highlighted that USD “could decline gradually toward 6.6640.” There is no change in our view. On the upside, a breach of 6.6780 (‘strong resistance’ level previously at 6.6850) would indicate USD is not declining further."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)