United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann are maintaining their bearish view on the US Dollar against the Chinese Yuan, signaling the pair could test lower levels despite muted recent trading activity. The analysts identify weakening momentum in USD/CNH and project the exchange rate may drift downward during intraday sessions, with critical support established at 6.7150. Their focus remains on the 6.7000 psychological level as the bullish target for the Yuan, representing a strengthening of the Chinese currency against the greenback. This outlook comes as underlying technical indicators point to continued pressure on the Dollar-Yuan pair, even though volatility has remained relatively subdued in recent sessions. The positioning suggests traders should watch for potential Yuan appreciation if the 6.7150 support level holds firm.
FXnCO Insight
Traders should monitor the 6.7150 support closely as a breakdown could accelerate Yuan gains toward 6.7000, presenting short USD/CNH opportunities for those aligned with the bullish Yuan bias.
Source: FXStreet