Chinese Yuan tipped for gradual gains against US Dollar – UOB

A gradual decline towards 6.6640 remains the outlook over 1–3 weeks and months for USD/CNH, provided the pair remains below the cloud near 6.7815. United Overseas Bank’s Quek Ser Leang and Lee Sue Ann retain a bearish view, anticipating that the Dollar will ease within a defined range. For intraday trading, however, they expect only modest downward momentum to limit losses.

Dollar Faces Gradual Decline Towards 6.6640

"24-HOUR VIEW: We indicated last Friday that USD “could trade between 6.6700 and 6.6760.” However, USD edged down to a low of 6.6688. Downward momentum has increased slightly. Today, USD could continue to edge lower, but based on the mild momentum, any decline is unlikely to reach 6.6640 today. Resistance is at 6.6740."

"1-3 WEEKS VIEW: We have been holding a negative USD view since the middle of the month. In our most recent narrative from last Wednesday (21 Oct, spot at 6.6750), we highlighted that USD “could decline gradually toward 6.6640.” There is no change in our view. On the upside, a breach of 6.6780 (‘strong resistance’ level previously at 6.6850) would indicate USD is not declining further."

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