UOB Group’s FX Strategists stated USD/CNH should grind decrease and retest the 6.3500 degree in the temporary horizon.
24-hour view: “Yesterday, we highlighted that ‘the swift and sharp drop seems to be strolling beforehand of itself however there is room for USD to dip to 6.3560’. Our expectations did now not materialize as USD dipped temporarily to 6.3575 earlier than rebounding. Downward strain has eased incredibly and USD is probable to consolidate for today, predicted be between 6.3590 and 6.3700.”
Next 1-3 weeks: “Our replace from the day prior to this (13 Jan, spot at 6.3625) nevertheless stands. As highlighted, downward momentum is establishing to construct and USD is predicted to change with a downward bias closer to 6.3500. A breach of 6.3780 (‘strong resistance’ stage was once at 6.3760 yesterday) would point out that our view is wrong.”