United Overseas Bank’s (UOB) Senior Technical Strategist Quek Ser Leang reports that the USD/CNH currency pair has shown increased upward momentum, following a move to 6.8051 and a close at 6.8038 on Monday [1]. The US dollar rose to a high of 6.7998 on Monday, and after a brief dip to 6.7894, it advanced to 6.8051, closing 0.14% higher at 6.8038 [1]. UOB now sees potential for the USD/CNH pair to test resistance at 6.8080, and possibly last month’s high at 6.8195, provided the pair remains above key support levels [1].
The bank’s 24-hour view suggests that while upward momentum had not increased significantly earlier, the recent advance has gathered pace, making a break above the 6.8080 resistance possible. However, UOB notes that any further advance is unlikely to reach last month’s high of 6.8195 unless the pair sustains momentum above 6.7960, with minor support at 6.8000 [1].
From a 1-3 week perspective, UOB has maintained since July 1 that the USD/CNH is likely to trade within a range of 6.7750 to 6.8080. With the recent rise to 6.8051, upward momentum is building, and a close above 6.8080 could lead to a move toward 6.8195. The upside risk remains as long as the USD/CNH holds above the strong support level of 6.7830 [1].
No specific market reactions or analyst opinions beyond UOB’s technical outlook are provided in the article [1].
CONCLUSION
UOB’s technical analysis indicates growing upside momentum for USD/CNH, with key resistance at 6.8080 and potential to test last month’s high if support levels hold. The Chinese yuan faces a downside bias in the near term, according to UOB’s strategist. Market participants should monitor the 6.8080 resistance and 6.7830 support for further directional cues.