USD/CNH looks side-lined below 7.0450 – UOB
|USD/CNH is expected to return to the consolidative theme on a breakdown of the 7.0450 level, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected USD to trade between 7.0950 and 7.1350 yesterday. However, it slipped to a low of 7.0811 before ending the day on a soft note at 7.0933. Downward momentum has improved somewhat and this could lead to a dip towards 7.0650. For today, the next support at 7.0450 is unlikely to come into the picture. Resistance is at 7.0980 followed by 7.1100.”
Next 1-3 weeks: “There is not much to add to the update from Monday (30 Mar). As highlighted, the chance for USD to break above 7.1700 has diminished. However, only a breach of 7.0450 (‘strong support’ level previously at 7.0350) would indicate that the current upward pressure has eased. Looking ahead, a break of 7.0450 would suggest USD could spend trade in a broad range for a period.”
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.