Chinese Yuan: Can gradual gains against US Dollar extend towards 6.6640? – UOB

Downside momentum continues to weigh on USD/CNH, with UOB strategists Quek Ser Leang and Lee Sue Ann noting that the pullback has deepened without clear indications of a recovery. For the intraday session, they expect the pair could briefly slip below nearby support before stabilising. Over both 1–3 weeks and 1–3 months, their outlook favours a gradual decline, provided strong resistance and the cloud boundary continue to cap the pair.

Can the Dollar Regain Ground Against the Offshore Yuan?

"24-HOUR VIEW: USD dipped to a low of 6.6792 two days ago. When USD was at 6.6820 yesterday, we highlighted the following: “Downward momentum is starting to slow, but there is scope for USD to test 6.6780 before a more sustained recovery can be expected. The next support at 6.6720 is unlikely to come under threat. Resistance is at 6.6845.” USD fell more than expected to 6.6735 and there is no sign of a recovery. Today, USD could dip below 6.6720 and test 6.6700. Based on the prevailing momentum, a continued decline below 6.6700 is unlikely. Resistance is at 6.6805."

"1-3 WEEKS VIEW: We have been holding a negative USD view since early last week. Yesterday (20 Oct, spot at 6.6820), we highlighted that USD “could continue to edge lower to 6.6720.” USD then dipped to a low of 6.6735. Despite declining, downward momentum has not increased significantly. However, as long as USD holds below 6.6850 (‘strong resistance’ level previously at 6.6950), it could decline gradually toward 6.6640."

(An editor reviewed this article, which was produced with assistance from an Artificial Intelligence tool. Learn more.)