USD/CNH likely to keep the consolidative mood – UOB

USD/CNH is still predicted to keep the 6.4730-6.5360 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘trade sideways’ was incorrect as it rose to 6.5209. Despite the relatively sharp rise, upward momentum has not improved by much. That said, there is scope for the advance in USD to test 6.5300 first before easing. The next resistance at 6.5360 is unlikely to come into the picture. On the downside, a break of 6.5100 would indicate the current mild upward pressure has eased.”

Next 1-3 weeks: “There is no change to our latest narrative from last Monday (15 Mar, spot at 6.4970). As highlighted, the outlook is mixed and USD is likely to trade between 6.4730 and 6.5360 for a period of time.”