According to the latest technical assessment by Senior Technical Strategist Quek Ser Leang at United Overseas Bank (UOB), the USD/CNH pair is exhibiting signs of increased upward momentum. Following Monday’s session, where the currency pair reached a high of 6.8051 and settled at 6.8038, the bank suggests there is now valid scope for testing resistance at 6.8080. If the pair sustains its position above existing support levels, there is potential for it to eventually reach last month’s peak of 6.8195.
The 24-Hour Market Perspective
Examining short-term fluctuations, USD hit a high of 6.7998 on Monday. Earlier projections had indicated that despite upward movement, the momentum was not particularly robust, keeping the 6.8080 major resistance out of immediate reach while establishing support at 6.7900 and 6.7850. However, the price trajectory proved resilient; after dipping to a low of 6.7894, the USD rallied to close at 6.8038, marking a 0.14% increase. With this gathered momentum, a breakout above 6.8080 appears plausible, though reaching the 6.8195 level remains unlikely in the immediate term. To keep this upward trend alive, the USD must maintain a floor above 6.7960, with 6.8000 serving as minor support.
Medium-Term Trends and Forecasts
The outlook has remained consistent since July 1, when the spot was trading at 6.7920, with the initial expectation being a range between 6.7750 and 6.8080. The recent push toward 6.8051 has shifted this dynamic. Upward momentum is currently building, and should the USD record a daily close above 6.8080, it is likely to track toward last month’s high of 6.8195. The upside risk remains intact as long as the pair holds above 6.7830, which stands as the defined 'strong support' level.
Broader Global Currency Developments
Elsewhere in the FX markets, the GBP/USD pair has accelerated, successfully breaching the critical 1.3400 barrier on Wednesday. Despite persistent geopolitical tensions in the Middle East, renewed selling interest in the Greenback has provided a boost to the Cable. Simultaneously, EUR/USD is trading with steady gains north of the 1.1400 hurdle during the latter half of the Wednesday North American session. The resurgence of a softer stance in the US Dollar allowed the pair to recover from initial drops, refocusing on the upside despite hawkish rhetoric found in the FOMC Minutes. Meanwhile, Gold has regained composure, bouncing from earlier lows and shifting focus toward the $4,100 mark per troy ounce. Traders are also noting a shift in strategy from major central banks—from the Federal Reserve to the Bank of England—as policymakers increasingly pull back from providing extensive forward guidance.
