According to FX Strategists at UOB Group, USD/CNH could still drop to the 6.3525 level in the next weeks.

Key Quotes

24-hour view: “Our expectations for USD to ‘edge lower’ did  not materialize as it traded sideways in a quiet manner between 6.3835 and 6.4000 before closing little changed at 6.3946 (+0.01%). Momentum indicators are mostly neutral and further sideway trading would not be surprising. Expected range for today, 6.3830/6.4030.”

Next 1-3 weeks: “Our view from Wednesday (20 Oct, spot at 6.3780) still stands. As highlighted, while the outsized sell-off on Tuesday is overdone, there is scope for USD to drop to May’s low near 6.3525. Looking ahead, USD has to close below this support before further weakness can be expected. The downside risk is intact as long as USD does not move above the ‘strong resistance’ level at 6.4200.”