USD/CNH: Likely to consolidate between 7.1600 and 7.1750 – UOB Group
|USD is likely to consolidate between 7.1600 and 7.1750. In the longer run, the current price movements are likely part of a range trading phase between 7.1550 and 7.1850, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Current price movements are likely part of a range trading phase
24-HOUR VIEW: "Although we expected USD to 'edge lower' yesterday, we held the view that 'any decline is likely limited to a test of 7.1500.' However, after dipping to a low of 7.1570, USD briefly soared to a high of 7.1740. The sharp rise appears to be excessive, and USD is unlikely to rise much further. Today, USD is likely to consolidate between 7.1600 and 7.1750."
1-3 WEEKS VIEW: "We have expected a lower USD since last week. In our most recent narrative from Tuesday (01 Jul, spot at 7.1570), we indicated that 'downward momentum has increased further, and if USD breaks below 7.1450, the next level to monitor is at 7.1300.' Yesterday, USD spiked to a high of 7.1740. Although our ‘strong resistance’ level at 7.1790 has not been breached yet, downward momentum has eased. The current price movements are likely part of a range trading phase between 7.1550 and 7.1850."
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.