USD/CNH still faces extra rangebound – UOB

USD/CNH is seen sticking to its current consolidative theme, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded between 6.9814 and 6.9968 last Friday, narrower than our expected sideway-trading range of 6.9650/6.9980. Momentum indicators are mostly neutral and we continue to expect USD to trade sideways, likely between 6.9750 and 6.9950.”

Next 1-3 weeks: “USD touched 7.0230 early last week and since then, it traded sideways in a relatively choppy manner. The price action is in line with our view from last Thursday (06 Feb, spot at 6.9780) wherein USD is expected to ‘trade sideways for now’. Momentum indicators are mostly neutral and from here, we continue to expect USD to trade within a 6.9500/7.0230 range.”