FXStreet reports that FX Strategists at UOB believe that a break below 6.4240 should allow for a deeper pullback in USD/CNH in the short-term horizon.
24-hour view: “USD traded between 6.4273 and 6.4391 before closing at 6.4350 (+0.10%). The quiet price actions are viewed as part of a consolidation and USD is likely to trade sideways for today, expected to be within a range of 6.4280/6.4480.”
Next 1-3 weeks: “As highlighted, downward momentum is beginning to build but USD has to close below 6.4240 before a sustained decline can be expected (next support is at 6.4100). The chance for USD to close below 6.4240 is quite high as long as it does not move above the ‘strong resistance’ level (currently at 6.4540) within these few days.”