According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, the USD/CNH currency pair unexpectedly declined to a low of 6.6919 on Friday, signaling the start of downside momentum for the US Dollar against the Chinese Yuan [1]. The analysts note that intraday action could see the pair briefly dip below the 6.6900 level, provided it remains under the resistance at 6.6985 [1].
In their 1–3 week outlook, UOB highlights that a clear break and close beneath the 6.6900 support could open the way for further downside toward 6.6800 [1]. The analysts had previously expected the USD to trade within a range, but the recent move to 6.6919 suggests that downward momentum is building. They emphasize that the likelihood of a sustained break below 6.6900 will persist as long as the USD stays below the strong resistance level at 6.7050 [1].
No specific market reactions or broader implications are discussed in the source. The analysis is focused on technical levels and the potential for further Yuan strength if the USD/CNH pair breaks below key support [1].
CONCLUSION
UOB analysts observe building downside momentum in USD/CNH, with a potential move toward 6.6800 if the pair breaks and closes below 6.6900. The market is closely watching these technical levels for signs of further Yuan appreciation against the US Dollar.