USD/CNH keeps the upside bias unchanged so far – UOB

The continuation of the upside in USD/CNH remains in the pipeline for the time being, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘could rise further but it remains to be seen if it can break and stay above 6.9650’. USD did not break 6.9650 as it fell sharply from 6.9625 (low has been 6.9315). The price actions are likely part of a broad consolidation range. Today, we expect USD to trade between 6.9250 and 6.9480.”

Next 1-3 weeks: “Our update from yesterday (02 May, spot at 6.9580) is still valid. As highlighted, while upward momentum has improved, USD has to break and stay above the major resistance at 6.9650 before a move to 7.0000 is likely. On the downside, a break of 6.9200 (‘strong support’ level) would indicate that the USD strength that started more than a week ago has come to an end.”