FXStreet reports that FX Strategists at UOB Group note that prospects for a test of the 6.5500 area in USD/CNH seem to have lost traction.

24-hour view: “We expected USD to ‘trade between 6.5000 and 6.5330’ yesterday. We did not anticipate a sharp drop to 6.4843. The rapid decline appears to be overdone and USD is unlikely to weaken much further. For today, USD is more likely to trade between 6.4820 and 6.5100.”

Next 1-3 weeks: “We did not anticipate the rapid manner by which USD gave up most of its gains as it plummeted to an overnight low of 6.4843. Upward momentum has been dented and the prospect for USD to move to 6.5500 has diminished. In order to rejuvenate the flagging momentum, USD has to move and stay above 6.5100 within these few days or a break of 6.4820 (no change in ‘strong support’ level) would indicate that USD is not ready to head higher just yet.”