USD/CNH: Decline is likely limited to a test of 6.9470 – UOB Group

US Dollar (USD) could edge lower; any decline is likely limited to a test of 6.9470. In the longer run, USD is under mild downward pressure and could edge lower to 6.9400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH is under mild downward pressure

24-HOUR VIEW: "USD drifted to a low of 6.9498 yesterday, recovering slightly to close marginally lower by 0.01% at 6.9565. The price movements have resulted in a slight increase in downward momentum. Today, USD could edge lower, but any decline is likely limited to a test of 6.9470. The major support at 6.9400 is unlikely to come into view. Resistance is at 6.9600, followed by 6.9650."

1-3 WEEKS VIEW: "USD edged lower over the past few days, and the decline has led to an increase in downward momentum, albeit not significantly. From here, USD could continue to edge lower, potentially reaching 6.9400. To maintain the mild downward pressure, USD must hold below 6.9750 (‘strong resistance’ level)."