USD/CNH faces extra consolidation near term – UOB

UOB Group’s FX Strategists noted USD/CNH could have likely charted a near-term top in past sessions.

Key Quotes

24-hour view: “Our expectation for USD to ‘test the strong support at 6.4500’ did not materialize as it traded within a relatively narrow range (6.4578/6.4688) before closing little changed at 6.4593. Momentum indicators are mostly ‘neutral’ and USD is expected to trade sideways between 6.4550 and 6.4750 for today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (28 Jun, spot at 6.4605). As highlighted, USD has likely found a short-term last week but it is too early to expect a sizeable pullback. USD is more likely to trade sideways for now, likely within a 6.4300/6.4900 range.”