USD/CNH remains focused on 6.3300 – UOB

“Yesterday, we highlighted that USD ‘is unlikely to strengthen much further’ and that we expected it to ‘trade sideways between 6.3680 and 6.3880’. USD subsequently traded within a variety of 6.3770/6.3910 before closing little changed at 6.3841 (+0.01%). the present movement is viewed as a part of a consolidation phase and for today; USD is probably going to trade within a 6.3720/6.3900 range.”

Next 1-3 weeks: “There isn’t much to feature to our update from Tuesday (01 Jun, spot at 6.3670). As highlighted,’while the main target is at 6.3300 now, oversold conditions suggest that this level might not inherit the image so soon’. All in, only a breach of the 6.4000 (no change in ‘strong resistance’ level) would indicate that the weakness in USD that started earlier last week has run its course.”

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