Analysts at UOB Group, Quek Ser Leang and Peter Chia, note that the US Dollar (USD) remains under mild pressure against the Chinese Yuan (CNH), with price action suggesting a potential move below 7.0860. The next downside target is seen near 7.0770, while a break above 7.1150 would indicate that the recent decline has stabilized.
Short-Term Outlook (24 Hours)
The analysts observed that the USD “could test 7.0860,” though they previously expected limited downside beyond that level. However, the currency pair dipped to a low of 7.0886 before rebounding to close nearly unchanged at 7.0980 (+0.04%).
UOB now believes that downward momentum has eased, with the pair likely to trade sideways between 7.0900 and 7.1080 in the near term.
Medium-Term Outlook (1–3 Weeks)
The broader outlook remains unchanged, with UOB maintaining that “USD could still drop below 7.0860,” targeting 7.0770 as the next support area.
That said, a break above 7.1150—the strong resistance level—would signal that the recent downward phase, which began in mid-October, has likely come to an end.