Chinese Yuan gains ground gradually towards 6.6640 against US Dollar – UOB

With USD/CNH extending its retreat and downward momentum persisting, UOB strategists Quek Ser Leang and Lee Sue Ann see no clear indication of a recovery. Their intraday outlook allows for a short-lived move below nearby support before the pair stabilises. Over both 1–3 weeks and 1–3 months, they favour a gradual decline, provided strong resistance and the cloud boundary continue to cap the pair.

Dollar remains under pressure from Offshore Yuan

"24-HOUR VIEW: USD dipped to a low of 6.6792 two days ago. When USD was at 6.6820 yesterday, we highlighted the following: “Downward momentum is starting to slow, but there is scope for USD to test 6.6780 before a more sustained recovery can be expected. The next support at 6.6720 is unlikely to come under threat. Resistance is at 6.6845.” USD fell more than expected to 6.6735 and there is no sign of a recovery. Today, USD could dip below 6.6720 and test 6.6700. Based on the prevailing momentum, a continued decline below 6.6700 is unlikely. Resistance is at 6.6805."

"1-3 WEEKS VIEW: We have been holding a negative USD view since early last week. Yesterday (20 Oct, spot at 6.6820), we highlighted that USD “could continue to edge lower to 6.6720.” USD then dipped to a low of 6.6735. Despite declining, downward momentum has not increased significantly. However, as long as USD holds below 6.6850 (‘strong resistance’ level previously at 6.6950), it could decline gradually toward 6.6640."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)