USD/CNH: Corrective pullback still in place – UOB

While below 6.5700, USD/CNH could re-visit the 6.5150 level in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for ‘the weakness in USD has room to extend to 6.5300’ did not materialize as it traded in a quiet manner between 6.5388 and 6.5525. The underlying tone has firmed somewhat and this could lead to USD edging upwards towards 6.5630. A sustained advance above this level is unlikely. Support is at 6.5450 followed by 6.5400.”

Next 1-3 weeks: “We continue to hold the same from yesterday (07Apr, spot at 6.5425). As highlighted, the current movement is viewed as the early stages of a corrective pullback. Barring a move above the ‘strong resistance’ level of 6.5700, the pullback could extend to 6.5150.”