UOB’s strategists expect USD/CNH to drift lower in the near term but remain range-bound. After extending last Friday’s decline, the pair touched 6.6912, and the bank sees only a slight pickup in downside momentum. For the next session, it forecasts trading within 6.6890 to 6.6960, and it judges a clean break under 6.6890 as unlikely.
Short-Term and Intra-Session Outlook
Over a one- to three-week horizon, UOB points to building downward momentum following the move below 6.7000, which was monitored from 18 Sep when spot was 6.7035. It had previously flagged scope for a fall towards 6.6920 if the pair broke and held beneath 6.7000, while keeping that view contingent on staying below 6.7170, described as strong resistance. With USD/CNH now having slipped to 6.6912, the next downside level cited is 6.6820, while the strong resistance marker is updated to 6.7020; on a one- to three-month view, it expects continued gradual declines as long as the pair remains below the cloud near 6.7815.
