Extra gains in USD/CNH could now see the 6.7600 region revisited in the next weeks according to Peter Chia and Quek Ser Leang, FX Strategists at UOB Group.

Key Quotes

24-hour view: “We did not expect the strong surge in USD that sent it soaring to a high of 6.6985 (we were expecting sideway-trading). At the time of writing, USD just cracked 6.7000. Upward momentum is strong and further USD strength would not be surprising. Resistance levels are at 6.7250 and 6.7400. On the downside, 6.6700 is likely strong enough to hold any pullback.”

Next 1-3 weeks: “We highlighted on Wednesday (04 May, spot at 6.6400) that it is premature to expect the bullish phase to come an end. We added, USD ‘may trade below 6.6979 for a few days first’. USD jumped to a high of 6.6985 during NY session before extending its advance during Asian hours. Strong upward momentum is likely to lead to an advance to 6.7400, as high as 6.7600. On the downside, the ‘strong support’ level has moved higher to 6.6400 from 6.6000.”