Chinese Yuan: UOB Sees Gradual Upside Bias Against US Dollar

6.6640 remains the projected downside target for USD/CNH. United Overseas Bank’s Quek Ser Leang and Lee Sue Ann retain a negative Dollar outlook, expecting a modest decline within a defined range. Mild intraday downside momentum is expected to limit losses. Over 1–3 weeks and months, they anticipate a gradual move lower while the pair remains below the cloud near 6.7815.

6.6640 Target: Negative Dollar Outlook

"24-HOUR VIEW: We indicated last Friday that USD “could trade between 6.6700 and 6.6760.” However, USD edged down to a low of 6.6688. Downward momentum has increased slightly. Today, USD could continue to edge lower, but based on the mild momentum, any decline is unlikely to reach 6.6640 today. Resistance is at 6.6740."

"1-3 WEEKS VIEW: We have been holding a negative USD view since the middle of the month. In our most recent narrative from last Wednesday (21 Oct, spot at 6.6750), we highlighted that USD “could decline gradually toward 6.6640.” There is no change in our view. On the upside, a breach of 6.6780 (‘strong resistance’ level previously at 6.6850) would indicate USD is not declining further."

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