Analysts Focus on 6.3300 as Sign of USD’s Recovery

Analysts predict that the USD/CNH pair will remain set on the downward trajectory in the near future. 

Analysts have been forecasting the pair’s move to the negative territory for some time already. USD/CNH was foreseen to trade sideways between 6.3680 and 6.3880. Analysts also maintained that the US dollar would not gain more strength. The USD almost defied their expectations yesterday, ending up trading within a range of 6.3770-6.3910. It closed the day at 6.3841 by inching 0.01% higher. The pair’s current trading range is viewed by analysts as a consolidation moment. On Thursday, USD is predicted to trade in the 6.3720 and 6.3900 area against the yuan. 

With regard to the long-term trading, analysts confirm their earlier prognosis. They say that the focus should now be on the 6.3300 mark, adding, however, that the pair might not reach it easily in the near future, thanks to oversold conditions. Only when the USD/CNH breaks over the 6.400 mark will the USD completely recover from the weakness that overtook it earlier last week.