USD/CNH: A deeper pullback remains in the pipeline – UOB
|FX Strategists at UOB Group suggested USD/CNH could drop further on a breach of 7.0850.
Key Quotes
24-hour view: “USD traded between 7.1034 and 7.1337 yesterday, wider than our expected range of 7.1100/1.1350. The underlying tone has weakened somewhat and but for now, any weakness is viewed as a lower trading range of 7.1000/7.1300 (a sustained decline below 7.1000 is not expected).”
Next 1-3 weeks: “The pace and extent of the pull-back from last week’s 7.1966 high came as a surprise. For now, we continue to hold the view that USD is “trading sideways” but if USD closes below 7.0850, it could signal the start of a deeper decline in USD. At this stage, the prospect for such a move is not that high but it would increase unless USD can move above 7.1500 within these few days.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.