UOB Group’s FX Strategists believe USD/CNH could extend further the upside momentum and test 6.4100 ahead of 6.4300 in the next weeks.

Key Quotes

24-hour view: “While our view for a stronger USD was correct, we did not anticipate the strong rally that sent it rocketing to a high of 6.3973 before extending its advance during Asian hours. In view of the impulsive momentum, USD could strengthen further to 6.4050, as high as 6.4100. Support is at 6.3880 followed by 6.3800.”

Next 1-3 weeks: “Yesterday, we highlighted that upward momentum received a strong boost and USD could extend its advance to 6.3800. However, the boost sent USD rocketing to 6.3973. The rally appears to have ample fuel and USD could continue to rally to 6.4100, as high as 6.4300 On the downside, the ‘strong support’ level has moved sharply higher to 6.3600 from 6.3400 yesterday.”