Analysts cite weakening momentum and key support levels as catalysts for potential yuan strength against the dollar.
United Overseas Bank analysts maintain a bearish outlook on USD/CNH, noting a softened tone despite recent subdued price action. Intraday, they expect modest downside movement, with 6.7150 acting as critical support.
The bank’s forecast targets a sustained break below 6.7200 over the next 1-3 weeks, which could pave the way for a move toward 6.7000. Resistance is pegged at 6.7340, with failure to breach this level reinforcing the downside bias. Recent trading saw USD/CNH dip below 6.7200 but close marginally higher at 6.7220.
Analysts emphasize that downward momentum has increased since early August, though confirmation of a break below 6.7200 remains pending. The outlook hinges on holding below 6.7340 resistance.