**BREAKING: UOB Shifts USD/CNH Outlook to Neutral After Sharp Dollar Rebound**
UOB Group strategists Quek Ser Leang and Lee Sue Ann have abandoned their bearish stance on the US dollar against the Chinese yuan after USD/CNH surged above the 6.78 threshold. The sharp rebound invalidated the bank’s previous downside call, prompting an immediate strategy revision.
The pair is now expected to consolidate within a defined trading range between 6.7620 and 6.7980 in the near term. Key resistance levels have been identified at 6.7850 and 6.7980, which traders should monitor closely for potential breakout signals.
The neutral call reflects diminished directional conviction in yuan strength amid shifting cross-border capital flows and ongoing uncertainty around US-China relations. Market participants had previously positioned for additional yuan appreciation, but technical momentum has stalled.
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FXnCO Insight
** Traders holding yuan-long positions should consider tightening stops near 6.7620 support while awaiting clearer directional signals at the upper resistance boundary of 6.7980.
Source: FXStreet