UOB forecasts the yuan to strengthen further against the dollar if the 6.7640 resistance level remains unbroken.
The USD/CNH pair is expected to trade within a narrow range of 6.7500 to 6.7620 intraday, with upward momentum showing signs of weakness. UOB analysts note that a breach of 6.7640 could alter the outlook, but current trends favor a gradual decline toward 6.7300 over the next 1-3 weeks.
Recent price action has remained within a tight band, with last week’s slight downward movement lacking strong momentum. The 21-week exponential moving average near 6.8430 remains a critical level for any sustained dollar recovery, though no immediate breakout is anticipated.
Short-term trading is likely to stay range-bound unless key resistance or support levels are breached, reinforcing expectations of a modest yuan appreciation.