According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/CNH’s upside is seen facing the next hurdle at 6.7200 in the short term.

Key Quotes

24-hour view: “USD settled on a soft note yesterday (6.6444, -0.49%). The underlying tone has softened and USD is likely to drift lower from here. That said, any weakness is not expected to break the strong support at 6.6200. Resistance is at 6.6600 followed by 6.6750.”

Next 1-3 weeks: “USD popped to a fresh multi-month high of 6.6979 yesterday before pulling back sharply. While upward momentum has been dented, it is premature to expect the bullish phase that started more than 2 weeks ago to come an end. Only a breach of 6.6000 would indicate that a short-term top is in place. That said, 6.6979 is a strong resistance now and USD may trade below this level for a few days first. Looking ahead, the next resistance level above 6.6980 is at 6.7200.”