USD/CNH faces initial test at 6.4650 – UOB

The upside momentum in USD/CNH is expected to meet the next resistance at the 6.4650 level in the short-term horizon, commented FX Strategists at UOB Group.

Key Quotes
24-hour view: “USD traded between 6.4317 and 6.4510 last Friday before closing slightly lower at 6.4405 (-0.15%). Momentum indicators are mostly neutral and USD is expected to consolidate and trade between 6.4300 and 6.4500 for today.”

Next 1-3 weeks: “USD dropped sharply to 6.4039 early last week before rebounding strongly. Despite the relatively sharp bounce, upward momentum has not improved by much. From here, USD could edge higher but any advance is likely limited to a test of 6.4650. There is another strong resistance at 6.4800. On the downside, a breach of 6.4200 (‘strong support’ level) would indicate that the current mild upward pressure has eased.”