United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann see USD/CNH consolidating intraday between 6.7710 and 6.7820 after quiet recent trading. For the next 1–3 weeks, the pair is expected to trade with a downside bias toward 6.7600, provided 6.7820 strong resistance is not clearly breached. On a multi-month view, a sustained recovery requires a break above the 21-week EMA at 6.8430.

Offshore Yuan retains mild downside pressure

"24-HOUR VIEW: USD closed little changed at 6.7734 (+0.07%) last Thursday. When USD was at 6.7730 in the early Asian session on Friday, we stated that “the current price movements are likely part of a consolidation phase between 6.7670 and 6.7780.” USD then traded in a quiet manner between 6.7720 and 6.7816, closing little changed at 6.7784 (+0.07%). The price action provides no fresh clues. Today, USD could trade in a range between 6.7710 and 6.7820."

"1-3 WEEKS VIEW: Last Wednesday (15 Jul, spot at 6.7720), we highlighted that “downward momentum is increasing, and USD is likely to trade with a downside bias toward 6.7600.” While USD subsequently dropped to a low of 6.7649, it has not been able to make further headway on the downside. That said, we will continue to hold the same view as long as 6.7820 (no change in ‘strong resistance’ level) is not clearly breached."

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