United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann report that the USD/CNH currency pair has experienced a sharp rebound, rising to 6.7153. This marks a shift from the bank's earlier negative stance on the US dollar, as the previous downward momentum has faded and the bullish bias for the Chinese yuan against the dollar has diminished [1].
In their 24-hour view, the strategists note that while the sharp rise in USD/CNH could extend further, any advance is likely to encounter strong resistance at 6.7200, with support at 6.7085 [1]. For the next one to three weeks, UOB expects the pair to edge higher but remain within a range of 6.7040 to 6.7290 [1].
Previously, UOB had anticipated further declines in USD/CNH if the pair broke below 6.7000, potentially targeting 6.6900. However, the recent upward movement to 6.7153 has led the bank to reassess, concluding that downward momentum has largely dissipated and the pair is now more likely to trade sideways or slightly higher within the specified range [1].
No specific market reactions or broader implications are discussed in the source, nor are there any analyst opinions beyond the technical outlook provided by UOB [1].
CONCLUSION
UOB strategists have shifted from a bearish to a more neutral-to-bullish outlook on USD/CNH, citing fading downward momentum and a likely trading range between 6.7040 and 6.7290. The yuan's recent strength against the dollar appears to be waning, with resistance expected near 6.7200. No additional market reactions or forward-looking statements are provided.