CNH to USD: Dollar Eyes 6.9805 Recovery After Sharp Weakness

PuzzledScholar · 2026-01-12T14:23:14+00:00

FX analysts at UOB Group note a recovery in the USD/CNH exchange rate, with potential upward movement toward 6.9805 despite limited momentum. Key support levels are identified, and medium-term outlook suggests limited downside risk, with traders focused on the 6.9950 resistance for directional bias.

PuzzledScholar

2026-01-12 14:23:14

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According to FX analysts at UOB Group, the US Dollar against the Chinese Yuan (CNH) is showing signs of recovery after hitting lows last Friday. The pair has potential to bounce back toward 6.9805, though further upside momentum appears limited at current levels.

Short-Term Technicals: Bounce Play Within Defined Range

In the 24-hour timeframe, USD/CNH dropped to 6.9662 last Friday before stabilizing near 6.9709 by close (down 0.06%). Early Asian session trading saw a modest recovery attempt underway. While it may be too early to confirm sustained strength, the pair has room to test the 6.9805 resistance level. Key support sits at 6.9690 and 6.9650, providing downside boundaries for near-term trading.

Medium-Term View: Oversold Conditions Limit Downside Risk

Looking out 1-3 weeks, the recent sharp depreciation in USD appears overdone. Although stabilization signals remain unclear, the combination of extreme selling pressure and deteriorating downward momentum suggests limited downside potential. The technical case points toward a possible retest of 6.9590 before further weakness materializes. Conversely, if USD/CNH breaks above the strong resistance at 6.9950, it would signal the Dollar’s downturn is finding a floor, paving the way for a more sustained recovery in CNH to USD weakness.

The technical setup presents a balanced two-way risk, with traders watching the 6.9950 breakout level as the key pivot for confirming directional bias.

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