USD/CNH predicted to keep the 6.6850-6.7850 range – UOB

FX Strategists at UOB Group noted USD/CNH is seen trading between 6.6850 and 6.7850 in the next weeks.

Key Quotes

24-hoour view: “USD traded in a relatively quiet manner yesterday (between 6.7300 and 6.7650) before ending the day largely unchanged at 6.7398 (- 0.05%). Momentum indicators are mostly neutral and further sideway trading would not be surprising. Expected range for today, 6.7200/6.7530.”

Next 1-3 weeks: “USD plunged to a low of 6.6788 last Friday (09 Oct) before staging a dramatic turnaround on Monday. The sharp bounce coupled with break of strong resistance levels suggests that a short-term bottom is in place. The current movement is viewed as the early stages of a consolidation phase. From here, USD could trade between 6.6850 and 6.7850 for a period of time.”