According to United Overseas Bank’s (UOB) Quek Ser Leang, the USD/CNH currency pair has experienced a slight softening in momentum but remains confined to a narrow intraday trading band of 6.7800–6.7930 [1]. The bank anticipates that, over the next 1–3 weeks, the pair will continue to trade within a broader range of 6.7750 to 6.8080, as the earlier strength of the US Dollar has faded [1].
Recent trading activity has shown the USD/CNH moving within an even narrower range than previously expected, specifically between 6.7811 and 6.7896, with no further increase in downward momentum observed [1]. UOB maintains its view that the USD will likely remain range-bound, most probably between 6.7800 and 6.7930 in the short term [1].
On a multi-week outlook, UOB notes that a sustained recovery in the USD/CNH pair would require a break above the 21-week exponential moving average (EMA) at 6.8430 [1]. However, as of now, there is no indication of a clear directional move, and the expectation is for continued sideways trading [1].
No market reactions or analyst opinions beyond UOB’s technical outlook are discussed in the source article [1].
CONCLUSION
UOB expects the USD/CNH pair to remain range-bound in the near term, with no clear signs of a breakout or sustained directional move. The market sentiment is neutral, and the impact is considered low as the pair continues to trade within a defined band.