FXStreet reports that FX Strategists at UOB Group note that USD/CNH has now moved to a consolidative phase, likely within 6.4200 and 6.4680 in the next weeks.

24-hour view: “We expected USD to trade sideways yesterday. Our view was incorrect as USD surged to an overnight high of 6.4550.  The rapid rise appears to be overdone and USD is unlikely to strengthen much further even though there is room for it to test 6.4600. A sustained advance above this level is unlikely (next resistance is at 6.4680). Support is at 6.4450 followed by 6.4330.”

Next 1-3 weeks: We did not anticipate the strong surge during NY session that cracked 6.4540 (high of 6.4550). The build-up in downward momentum fizzled out quickly. The outlook is mixed now and USD could trade within a 6.4200/6.4680 range for a period of time.”