In opinion of FX Strategists, USD/CNH could now attempt a consolidative phase, likely between 6.4300 and 6.4800 in the short-term horizon.
24-hour view: “Yesterday, we expected USD to ‘trade between 6.4400 and 6.4580’. However, USD rose to 6.4646 before easing off. Despite the advance, upward momentum has not improved by much and USD is unlikely to strengthen much further. For today, USD is more likely to consolidate and trade between 6.4540 and 6.4660.”
Next 1-3 weeks: “Our latest narrative was from Monday (06 Sep, spot at 6.4440) where we indicated that USD is still under pressure but the next major support at 6.4200 may not come into the picture so soon. USD rose to 6.4646 yesterday (07 Sep) before easing off. While our ‘strong resistance’ level at 6.4660 is still intact, upward momentum has more or less dissipated. The sharp but short-lived drop to 6.4244 last Friday and the subsequent sharp and rapid rebound has resulted in a mixed outlook. From here, USD could trade within a 6.4300/6.4800 for a period of time.”