USD/CNH: Downside momentum appears over – UOB
|The downside bias in USD/CNH seems over for the time being, say FX Strategists at UOB Group Quek Ser Leang and Peter Chia.
Key Quotes
24-hour view: “USD traded between 6.7302 and 6.7452 last Friday before closing at 6.7353 (-0.13%). USD soared during early Asian hours and upward momentum is beginning to build. Further advance would not be surprising but a break of the strong resistance at 6.7650 is unlikely. Support is at 6.7370 followed by 6.7300.”
Next 1-3 weeks: “Last Thursday (11 Aug, spot at 6.7290), we highlighted that the rapid build-up in downward momentum suggests USD could weaken further to 6.7100. Since then, USD has not been able to make much headway on the downside. Shorter-term downward has waned and the chance for USD to weaken to 6.7100 has diminished. That said, only a break of 6.7650 (no change in ‘strong resistance’ level from last Friday) would indicate that USD is unlikely to weaken further.”
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.