UOB Group’s FX strategists see USD / CNH shift focus to the near term 6.4920 level.
24 hour view: “Our expectation for the USD to ‘move to 6.4800 first before easing’ did not materialize, trading between 6.4426 and 6.4680 before the close , little change. The current move is considered part of a consolidation and for today the USD is expected to trade sideways between 6.4400 and 6.4700. “
Next 1-3 weeks: “Yesterday (February 18th, spot at 6.4320) we pointed out that” 6.4500 is strong resistance and the USD needs to break that level before we can expect further gains. “. We didn’t quite anticipate how easily the USD broke through 6.4500 to hit 6.4715. The breakout of strong resistance coupled with improving momentum suggests that the USD may continue to advance in the coming days. The next resistance level to note is at 6.4920. Overall, the outlook for the USD is considered positive as long as it does not drop below 6.4200. “