Chinese Yuan: Modest upside against US Dollar likely as long as support holds - UOB

6.6530 remains strong support for USD/CNH. Following the pair’s retreat from recent highs, United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note a modest strengthening in downward momentum. They expect the Dollar to slip over the next 24 hours without breaching that support, while resistance stands at 6.6720. Over 1–3 weeks, confirmation of a broader recovery requires a close above 6.6855.

6.6530 Support Seen Limiting Dollar Decline

"24-HOUR VIEW: After USD popped to a high of 6.6855 and pulled back two days ago, we highlighted yesterday that “the pullback has scope to extend, but with no clear increase in downward momentum, USD is likely to stay within a range of 6.6620/6.6800.” USD then edged lower to a low of 6.6635. There has been a slight increase in downward momentum, and USD could continue to edge lower. That said, any decline is unlikely to break the strong support at 6.6530. Resistance is at 6.6720."

"1-3 WEEKS VIEW: We continue to hold the same view as yesterday (05 Nov, spot at 6.6720). As highlighted, “for USD to continue to recover, it must close above 6.6855.” On the downside, a breach of the ‘strong support’ at 6.6530 (no change in level) would indicate that USD is not recovering further. Looking ahead, if USD were to close above 6.6855, the next level to watch is 6.6940."

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