USD/CNH could attempt a move to 6.5200 in the near-term – UOB
|According to FX Strategists at UOB Group, USD/CNH could edge higher and test the 6.5200 area in the next weeks.
Key Quotes
24-hour view: “We highlighted last Friday that ‘the underlying tone has improved a tad’ and we expected USD to ‘trade within a higher range of 6.4580/6.4900’. While our view was not wrong, USD traded within a narrower range than expected (6.4630/6.4855). The underlying tone has improved further and USD is likely to edge upwards to 6.5000. For today, a sustained rise above this level is unlikely. Support is at 6.4760 followed by 6.4670.”
Next 1-3 weeks: “We highlighted last Friday (15 Jan, spot at 6.4680) that upward momentum is begging to improve and a clear break of 6.4900 could lead to USD moving higher to 6.5200. Upward momentum has improved further and USD is currently holding just below 6.4900. In other words, there is no change in our view. The prospect for USD to move to 6.5200 would increase further as long as 6.4450 (‘strong support’ level previously at 6.4300) is not breached.”
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.