USD/CNH: Extra decline could see 6.3130 retested – UOB

USD/CNH can extend the downside to the 6.3130 region in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for USD to ‘dip below 6.3180’ yesterday did materialize as it traded within a range of 6.3193/6.3302. The underlying tone appears to have improved and for today, USD could trade between within a higher range of 6.3230/6.3350.”

Next 1-3 weeks: “There is no change in our view from yesterday (21 Feb, spot at 6.3245). As highlighted, despite the drop to a fresh low of 6.3180 last Friday, downward momentum has not improved by much. That said, USD could weaken to 6.3130. The downside risk is intact as long as USD does not move above 6.3390 (no change in ‘strong resistance’ level).”