**BREAKING: Chinese Yuan Holds Narrow Range Against Dollar, Downside Pressure Remains**
United Overseas Bank currency strategist Quek Ser Leang reports the offshore Chinese yuan continues trading within a constrained band against the US dollar, with limited breakout potential in the immediate term. The USD/CNH pair is expected to remain boxed between 6.7940 and 6.8080 as market participants await clearer directional signals.
Despite the recent consolidation, UOB maintains that downside risk persists for the yuan, suggesting the currency remains vulnerable to further weakness. The analysis comes as traders navigate ongoing uncertainty around US-China relations and diverging monetary policy expectations between the Federal Reserve and People’s Bank of China.
The tight trading range reflects market indecision but doesn’t eliminate structural pressure on the yuan. Forex traders should monitor the 6.8080 resistance level closely, as a break above could signal renewed dollar strength and accelerated yuan depreciation.
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FXnCO Insight
** Position for potential yuan weakness by watching the 6.8080 resistance—a break higher opens the door for extended USD/CNH gains with limited near-term support for Chinese currency strength.
Source: FXStreet