UOB analysts forecast a downside bias for USD/CNH toward 6.7600 over 1-3 weeks as momentum shifts after a sharp drop to 6.7691.
The offshore Chinese yuan strengthened against the US dollar, with USD/CNH falling sharply to 6.7691, defying earlier expectations of range-bound trading. UOB analysts now see increased downward momentum, though the 6.7600 support level is unlikely to be reached immediately.
Previously, UOB had expected USD/CNH to trade between 6.7700 and 6.8100. The breach below 6.7700 signals a shift in sentiment, with a downside bias toward 6.7600 over the next 1-3 weeks. A move above 6.7860 would negate the bearish outlook.
The rapid decline in USD/CNH reflects broader dollar weakness, with minor resistance now at 6.7760 and strong resistance at 6.7860. Analysts caution that a breach of 6.7800 could stabilize the pair.