UOB strategists see potential for the yuan to strengthen toward 6.7600 against the dollar if resistance at 6.7820 holds.
The USD/CNH pair is consolidating around 6.77, with UOB strategists maintaining a downside bias toward 6.7600 in the 1-3 week outlook. Resistance at 6.7820 remains a key level to watch, with a breach potentially shifting momentum higher over the medium term.
Recent price action has seen the pair trade quietly between 6.7649 and 6.7753, closing little changed near 6.7734. Downward momentum persists, though short-term consolidation is expected within a 6.7670-6.7780 range.
Strategists noted that the bias remains intact as long as the 6.7820 resistance level holds, reinforcing expectations for a test of 6.7600 in the near term.