UOB Group FX strategists noted negative stance USD / CNH, adding a potential move to the 6.8460 level in the coming weeks.
24 hour view: “Yesterday we estimated the USD ‘could drop below last week’s low at 6.8935 but next support at 6.8850 is probably out of range”. The weakness that followed exceeded our expectations as the USD fell to a low of 6.8801 before extending its decline this morning. Further weakness is not ruled out, but oversold conditions suggest a more moderate pace of decline and the next support at 6.8650 may not be relevant (minor support is at 6.8730). Resistance is at 6.8890 followed by 6.8980. “
Next 1-3 weeks: “After about a week, the 6.8850 level we first reported last Wednesday (August 19th, spot at 6.9120) finally kicked in as the USD fell. As low as 6.8801 yesterday (Aug 26). The lackluster momentum over the past few days has gathered pace, and as shown in the latest updates, the next notable support level below 6.8850 is at 6.8460. Overall, the current negative phase in USD is considered intact as long as the USD remains below 6.9180 (the “strong resistance” level was previously at 6.9400). “