United Overseas Bank’s (UOB) Quek Ser Leang indicates USD/CNH has seen a slight softening in momentum but remains confined to a narrow intraday band of 6.7800–6.7930. Over the next 1–3 weeks, the bank expects range trading between 6.7750 and 6.8080 as earlier Dollar strength has faded. On a multi‑week view, a sustained recovery requires a break above the 21‑week EMA at 6.8430.

Offshore Yuan pair stays range bound

"24-HOUR VIEW: We highlighted last Friday that “there has been a slight increase in downward momentum, but this is likely to lead to USD trading in a lower range of 6.7820/6.7940 rather than a sustained decline.” We were not wrong, although USD traded within a narrower range than expected (6.7811/6.7896). There has been no further increase in downward momentum, and we continue to expect USD to trade in a range, most likely between 6.7800 and 6.7930."

"1-3 WEEKS VIEW: Last Wednesday (01 Jul, spot at 6.7920), we highlighted that the recent USD “strength has come to an end.” We also highlighted that USD “is likely to trade in a range between 6.7750 and 6.8080.” Although USD has been edging lower since then, there has been no clear increase in downward momentum. In other words, there is no change in our view"

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