The U.S. dollar may ease against the offshore yuan over the next 24 hours, but a decline through 6.6530 was considered unlikely in a technical view FXStreet attributed to United Overseas Bank strategists.
FXStreet described 6.6530 as strong support and put resistance at 6.6720 for the reported near-term outlook. Those levels frame the expected move in USD/CNH, the rate showing how many offshore yuan buy one dollar.
The outlet said the pair had slipped from a recent high of 6.6855 to 6.6635, with downward momentum picking up slightly. It also cited an earlier UOB range of 6.6620 to 6.6800. The report presented the assessment as a technical reading of price action and momentum.
For a one-to-three-week horizon, the report made a close above 6.6855 the threshold for the dollar to resume recovering. If the pair closed above that level, 6.6940 would be next in view. A break under 6.6530, by contrast, would indicate the dollar was not recovering further, FXStreet reported.
FXStreet attributed the outlook to Quek Ser Leang and Sue Ann Lee. UOB lists Quek as a senior technical strategist and senior vice president, and Lee as an economist and first vice president.
Hong Kong Exchanges and Clearing says CNH refers to renminbi circulated in Hong Kong. Since USD/CNH counts yuan per dollar, a falling reading means one dollar exchanges for fewer offshore yuan.
