According to United Overseas Bank’s (UOB) Quek Ser Leang, the USD/CNH currency pair remains confined to a tight trading range, with the US Dollar expected to fluctuate between 6.7940 and 6.8080 in the near term [1]. Recent price action saw the USD/CNH trade within a range of 6.7934 to 6.8073, closing little changed at 6.8003, representing a marginal decline of 0.06% [1].
UOB maintains a positive outlook for the US Dollar over the 1–3 week horizon, provided that the strong support level at 6.7900 is not breached [1]. The bank also notes tentative upward momentum for the Dollar over the 1–3 month period, which is contingent on a break above the 21-week EMA [1]. Should the support at 6.7900 hold, there remains a possibility for the USD to move toward 6.8300 [1].
No significant shift in momentum was observed following the latest trading session, and the expectation is for the USD/CNH to continue trading within the established range in the immediate future [1].
CONCLUSION
The Chinese Yuan continues to trade in a narrow range against the US Dollar, with UOB highlighting downside risks for the Yuan if key support levels are breached. Market sentiment remains cautiously positive for the Dollar, but no immediate breakout is anticipated.