USD/CNH appears to have entered a consolidation phase after recent sharp declines, with price action now expected to remain between 7.0900 and 7.1070 in the near term. UOB Group FX analysts Quek Ser Leang and Peter Chia maintain their broader bearish view on the US Dollar, identifying 7.0885 as the next key downside level to watch.
24-Hour Outlook: Consolidation Likely
The pair fell to 7.0918 on Thursday and, despite deeply oversold conditions, UOB noted on Friday that a break below the major support at 7.0885 was unlikely. USD/CNH then dipped to 7.0910 before rebounding to 7.1023 and eventually closing near 7.1000 (+0.03%).
Analysts now see the pair stabilizing and expect it to trade within a 7.0900–7.1070 range today.
1–3 Week View: Downside Bias Maintained
UOB reiterated last Friday that their bearish stance on USD/CNH remains intact, with a move toward 7.0885 still anticipated. This outlook holds as long as the strong resistance level at 7.1170 is not breached.