USD/CNH: Sellers should meet strong support around 6.8000 – UOB

FOMC Meeting

For the time being, the USD/further CNH’s downward bias should run into strong resistance near 6.8000.

Important Quotations Day and Night: “During yesterday’s Asian trading, the Dollar fell to 6.8108 before bouncing back to trade in a range for the remaining sessions. The Dollar is expected to trade in a range between 6.8150 and 6.8500 today as it appears to have entered a phase of consolidation.

1-2 weeks from now: “We have been anticipating a weaker USD for more than a week. In our most recent narrative, which was published on March 21 (with a spot price of 6.8800), we said that the US dollar “needs to break and stay below 6.8550 in the next couple of days otherwise it is unlikely to decline further.” On Wednesday (22 Mar), the Dollar fell below 6.8550, and yesterday it fell even lower, to 6.8108. The market actions indicate that the USD could weaken much further, although any decline is anticipated to run into firm support near 6.8000. As long as it remains below 6.8710 (a previous “strong resistance” level at 6.9100), the downside risk is still present.