United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann report that the USD/CNH currency pair slipped to a low of 6.7166 and closed slightly lower, with short-term downside momentum gradually building [1]. The analysts have maintained a negative outlook on the US Dollar against the Chinese Yuan since early August, highlighting 6.7000 as the next key level to watch if the 6.7200 support is breached [1].
In their 24-hour view, the analysts noted that while the USD could edge lower, the 6.7150 support was unlikely to come under significant threat, a prediction that was validated as the USD declined to 6.7166 [1]. They suggest that while downward momentum is increasing, any further decline is unlikely to reach 6.7100 in the immediate term, with resistance levels at 6.7210 and 6.7250 [1].
For the 1-3 week outlook, UOB reiterates its negative stance on the USD, emphasizing that if the currency breaks and holds below 6.7200, the next level to monitor is 6.7000 [1]. This view will be maintained as long as the USD remains below the strong resistance at 6.7300 [1]. The recent closing price for USD/CNH was 6.7169, representing a 0.08% decline [1].
No specific market reactions or broader implications were discussed in the article, nor were there any analyst opinions beyond the technical outlook provided [1].
CONCLUSION
UOB analysts maintain a bearish outlook on USD/CNH, targeting 6.7000 as the next key level if 6.7200 support is breached. Downward momentum is building, but immediate declines below 6.7100 are seen as unlikely. The negative view persists as long as USD/CNH stays below 6.7300.