USD/CNH faces strong resistance at 7.1560 and 7.1650 – UOB
|FX Strategists at UOB Group noted further upside in USD/CNH is likely to meet a tough hurdle at 7.1560 ahead of 7.1650 in the next weeks.
Key Quotes
24-hour view: “USD traded sideways between 7.1090 and 7.1264 yesterday, narrower than our expected range of 7.1050/7.1300. Despite the quiet price action, the underlying tone has weakened and from here, USD could dip below the 7.1050 support. For today, the next support at 7.0950 is not expected to come into the picture. Resistance is at 7.1250.”
Next 1-3 weeks: “Despite the relatively strong bounce last Friday (7.1337, +0.32%), upward momentum has not improved by much and it is too early to expect a sustained advance in USD. While USD could edge higher from here, any up-move is expected to encounter solid resistance at 7.1560 followed by the year-to-date high near 7.1650 which is acting as a formidable resistance. On the downside, a breach of 7.0800 would indicate the current mild upward pressure has eased.”
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.