USD/CNH: Further downside faces a tough support around 6.8400 – UOB

Extra losses in USD/CNH are seen meeting a solid support around the 6.8400 region in the near term, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “USD traded between 6.8819 and 6.9239 yesterday before settling at 6.9006 (-0.33%). The underlying tone has weakened somewhat and USD is likely to drift lower. However, any decline is unlikely to challenge the support at 6.8700. Resistance is at 6.9100, followed by 6.9240.”

Next 1-3 weeks: “While the decline in USD from last month has slowed, the risk is still on the downside. Only a break of 6.9400 (‘strong resistance’ level) would indicate that the downward pressure has eased. That said, any decline is expected to face solid support at 6.8400.”