USD/CNH: Extra gains come above 6.4880 – UOB

UOB Group’s FX Strategists see USD/CNH advancing to 6.5000 once 6.4880 is cleared.

Key Quotes

24-hour view: “USD traded between 6.4722 and 6.4875 yesterday before closing little changed at 6.4817 (-0.04%). Despite the quiet price actions, the underlying tone has weakened somewhat. From here, USD could edge lower but any weakness is unlikely to break the support at 6.4630 (minor support at 6.4690). Resistance is at 6.4830 followed by 6.4880.” 

Next 1-3 weeks: “Last Friday (17 Sep, spot at 6.4530), we highlighted USD ‘could trade within a 6.4200/6.4680 range for a period of time’. While USD easily surged past 6.4680, it struggled to move beyond the resistance at 6.4880. Further USD strength is not ruled but USD has close above 6.4880 before a sustained advance can be expected (next resistance is at 6.5000). On the downside, a break of 6.4500 would indicate that USD is not ready to move to 6.5000 just yet.”