USD/CNH: FURTHER UPSIDE IN THE PIPELINE – UOB

USD/CNH could extend the bullish momentum to the 6.8000 region in the next few weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

KEY QUOTES

24-hour view: “Our expectations for USD to ‘retest the 6.7900 level’ did not materialize as it eased off from a high of 6.7841 before closing largely unchanged at 6.7638 (-0.04%). The price actions appear to be part of a consolidation phase. In other words, USD is likely to trade sideways for today, expected to be within a range of 6.7430/6.7800.”

Next 1-3 weeks: “We continue to hold the same view as from last Friday (15 Jul, spot at 6.7670). As highlighted, the improved upward momentum suggests that USD is likely to advance further. The next level to monitor is at 6.8000. Overall, the positive outlook for USD is intact as long as it does not move below 6.7190 (no change in ‘strong support’ level from yesterday).”