USD/CNH: Further upside could test 6.7440 – UOB

According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/CNH could now attempt a move to the 6.7440 region in the next weeks.

Key Quotes

24-hour view: “Our expectations for USD to ‘advance to 6.7200’ yesterday were incorrect it dropped to 6.6688 before rebounding strongly to close unchanged at 6.7000. The underlying tone still appears to firm and we see chance for USD to edge higher. However, a clear break of 6.7200 appears unlikely. Support is at 6.6850 followed by 6.6700.”

Next 1-3 weeks: “We continue to hold the same view as from yesterday (09 Jun, spot at 6.7030). As highlighted, there is scope for the short-term USD strength to extend to 6.7440. At this stage, a sustained rise above this level is unlikely. Overall, only a break of 6.6630 (no change in ‘strong support’ level from yesterday would indicate the current mild upward pressure has eased.”