USD/CNH: Upside bias unchanged above 6.7400 – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang expect the current upside momentum in USD/CNH to remain intact above the 6.7400 level.

Key Quotes

24-hour view: “Yesterday, we held the view that the bias for USD is to the upside. However, USD traded between 6.7765 and 6.8049 before closing unchanged at 6.7970. The underlying tone still appears to be a tad firm and USD is likely to edge higher today. However, any advance is unlikely to break 6.8150. Support is at 6.7880, followed by 6.7765.”

Next 1-3 weeks: “On Monday (06 Feb, spot at 6.8200), we highlighted that while short-term conditions are deeply overbought, as long as the ‘strong support’ level, currently at 6.7400 is not breached, USD could rise further to 6.8500, as high as 6.8800. We continue to hold the same view.”