The Chinese yuan is maintaining its strength against the US dollar as USD/CNH continues trading with a downside bias, according to United Overseas Bank analyst Quek Ser Leang. The currency pair is holding near critical support at 6.7600, with analysts expecting this bearish dollar momentum to persist over both the next 24 hours and through the coming one to three weeks. Strong resistance has been identified at 6.7820, capping any potential dollar rallies against the offshore yuan.
The sustained yuan strength reflects broader dollar weakness and comes as Chinese authorities appear comfortable with current exchange rate levels. Currency traders should monitor the 6.7600 level closely as a break below could accelerate dollar selling pressure, while any moves toward 6.7820 are likely to meet substantial resistance.
FXnCO Insight
Traders should position for continued yuan upside with tight stops above 6.7820 resistance, while a decisive break below 6.7600 could signal an extended dollar decline against the Chinese currency.
Source: FXStreet