Usdcnh To Drop Uob

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Usdcnh To Drop Uob

Usd/Cnh Will Continue To Drop

According to UOB Group, the USD/CNH pair is under pressure, which means a test of 7.1200 is highly likely. In the long term, the overall trend remains bearish, and it will continue like this for the next few months.

In the short term, the US Dollar is expected to trade in a range. The lower end of the range is 7.1300, but it is also expected to break in the coming months. However, a clear break below the 7.12 is highly unlikely as the bearish pressure is still not that strong.

Cnh Will Gain Strength Against Usd

On the way up, the USD/CNH pair will find resistance near 7.14 and 7.15. However, given all the trouble the US economy is going through, the US Dollar is unlikely to stage a rebound.

So, the chances of breaking the resistance at 7.14 and 7.15 are highly unlikely. On the contrary, the CNH will gain strength as the US Dollar will start to lose its charm.

The US Federal Reserve is expected to go through multiple rate cuts in the year 2026. Especially once the Fed has a new chairman in 2026, there will be no more friction between the US president and the Federal Reserve.

So, the US Fed will be laser-focused on lowering the rates. At the same time, the US economy is expected to further weaken in the coming months.

All of these factors will contribute to the weakening of the US Dollar against the CNH. Also, the US-China trade tensions will weigh heavily on the USD/CNH pair.

In the coming months, experts believe that the trade wars will once again reignite between the US and China. So, we can also expect an uptick in US inflation as Chinese goods/services will become more expensive for consumers.

So, the bottom line is that USD/CNH is headed towards 7.1200 as that's the path of least resistance.

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