According to UOB analysts Quek Ser Leang and Lee Sue Ann, the USD/CNH currency pair is currently consolidating after reaching 6.7200, with momentum slowing in the very near term. The analysts note that for the coming days and weeks, the pair is likely to trade within a range of 6.7120 to 6.7220, though a rapid build-up in momentum could push the pair toward 6.7250 and potentially test major resistance at 6.7330 [1].
In the 24-hour view, the USD rose to 6.7200 before closing little changed at 6.7168, representing a 0.08% increase. While upward momentum appears to be slowing, UOB suggests it is too early to expect a sustained pullback, and consolidation at higher levels is more likely in the immediate term [1].
Looking at the 1-3 week horizon, UOB turned neutral on the USD two days prior, expecting consolidation between 6.6900 and 6.7080. However, the recent move above 6.7080 and the rapid build-up in momentum indicate the possibility of further gains toward 6.7250 and resistance at 6.7330. Longer term, the analysts expect a gradual downside for USD/CNH as long as it remains below 6.7815 [1].
CONCLUSION
UOB analysts see USD/CNH consolidating with potential for short-term gains toward 6.7330, though momentum is slowing. The longer-term outlook remains for a gradual downside as long as the pair stays below 6.7815. Market participants are advised to watch for consolidation within the stated ranges and any momentum shifts.