USD/CNH sticks to the consolidative theme – UOB

USD/CNH is likely to trade within the 6.5400-6.5800 range in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD dipped to 6.5513 last Friday, rebounded to 6.5702 before easing off. The underlying tone has firmed somewhat and USD could rise above 6.5700. The next resistance at 6.5800 is unlikely to come into the picture. Support is at 6.5550 followed by 6.5500.”

Next 1-3 weeks: “In our latest narrative from last Thursday (08 Apr, spot at 6.5530), we expected the ‘corrective pullback in USD to extend lower to 6.5150’. Our view was proven incorrect as USD edged a couple of pips above our ‘strong resistance’ level at 6.5700 (high of 6.5702 last Friday). The current movement is viewed as part of a consolidation and USD is expected to trade between 6.5400 and 6.5800 for now.”