United Overseas Bank’s (UOB) analyst Quek Ser Leang projects that the USD/CNH currency pair is likely to trade slightly higher within a developing range in the short term, with intraday levels expected between 6.7500 and 6.7620 [1]. Despite a slight increase in upward momentum, UOB does not anticipate a sustained advance for the US Dollar against the Chinese Yuan, suggesting instead that the pair will remain range-bound today [1].
Looking ahead over a 1–3 week horizon, UOB maintains its view that the USD/CNH could continue to edge lower toward 6.7300, provided the strong resistance level at 6.7640 is not breached [1]. The medium-term outlook for a sustained recovery in the US Dollar would require a break above the 21-week EMA, which is currently near 6.8430 [1].
Recent price movements have been characterized as part of a range-trading phase, with the US Dollar trading in a higher range of 6.7467 to 6.7592 during early Asian trade yesterday [1]. UOB notes that while the US Dollar edged lower last week, there has been no clear increase in downward momentum, reinforcing the expectation of gradual Yuan strengthening [1].
CONCLUSION
UOB's analysis suggests a gradual strengthening of the Chinese Yuan against the US Dollar, with the USD/CNH pair expected to edge lower toward 6.7300 if resistance at 6.7640 holds. The market remains in a range-trading phase, and a sustained recovery for the US Dollar would require a significant technical breakout. Overall, the sentiment is mildly positive for the Yuan, with moderate market impact expected.