In opinion of FX Strategists at UOB Group, USD/CNH could grind lower and retest the 6.3310 level in the near term.

Key Quotes

24-hour view: “Despite rebounding sharply from a low of 6.3390 last Friday, the risk for USD is still on the downside. Only a break of 6.3700 (minor resistance is at 6.3650) would indicate that the downside risk has dissipated. Support is at 6.3450 followed by Friday’s low at 6.3390.”

Next 1-3 weeks: “USD dropped sharply last Friday, downward momentum is beginning to build, and a test of Dec’s low near 6.3310 would not be surprising. The downside risk is deemed intact as long as USD does not move above the ‘strong resistance’ level, currently at 6.3750.”