6.6450 in view as Chinese Yuan extends uptrend against US Dollar – UOB

The 1–3 week outlook for USD/CNH remains negative. United Overseas Bank strategists Quek Ser Leang and Lee Sue retain a bearish stance as the pair edges lower under persistent downward pressure. Near-term forecasts point to a possible test of nearby support. Both the 1–3 week and 1–3 month outlooks favour further gradual declines, provided the pair remains below key resistance and cloud boundaries.

Offshore Yuan strength limits Dollar gains

"24-HOUR VIEW: We expected USD to “edge lower” yesterday, but we pointed out that “slowing downward momentum suggests any decline should stay within a 6.6575/6.6655 range.” USD declined more than expected to 6.6559 before settling at 6.6564 (-0.07%). The downward pressure remains intact, and today, USD could edge lower and test 6.6520. A continued decline below this level is unlikely. Resistance is at 6.6605."

"1-3 WEEKS VIEW: Following our negative USD view from the middle of the month, we highlighted two days ago (28 Oct, spot at 6.6655) that “there is a chance for USD to test 6.6550.” Yesterday, USD declined to a low of 6.6559. While oversold, the decline has not stabilised, and USD could continue to edge lower. The next level to watch is 6.6450. On the upside, a breach of 6.6640 (‘strong resistance’ level previously at 6.6700) would indicate that USD is not declining further."

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