USD/CNH faces extra downside below 6.5319 – UOB
|Extra losses in USD/CNH are expected on a break below 6.5319, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday ‘strong downward momentum suggests further USD weakness is likely even though the year-to-date low of 6.5319 could be just out of reach’. Our view was not wrong as USD dropped to a low of 6.5425. Downward momentum has improved, albeit not by much. From here, USD could test 6.5319 first before a rebound can be expected. For today, the next support at 6.5200 is not expected to come into the picture. Resistance is at 6.5550 followed by 5.5660.”
Next 1-3 weeks: “We have held the same view for a week wherein USD ‘is in a consolidation and could trade between 6.5400 and 6.6200 for a period of time’. USD weakened sharply yesterday (01 Dec) and is approaching the bottom of the range at 6.5400. Downward momentum is beginning to improve but is not strong for now. USD has to stage a NY closing below the year-to-date low of 6.5319 in order to indicate that the next down-leg towards 6.4960 has started. The prospect for such a move is not high for now but it would increase as long a USD does move above 6.5800 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.