USD/CNH moved into a consolidative phase – UOB
|In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, USD/CNH is now expected to navigate between 6.7200 and 6.8550 in the next few weeks.
Key Quotes
24-hour view: “Our view for USD to ‘trade in a range’ yesterday was incorrect as it soared to a high of 6.7900 before closing at 6.7700 (+0.35%). While upward momentum has not improved much, USD could advance to 6.8000 before the likelihood of a pullback increases. The next resistance at 6.8350 is unlikely to come into view. Support is at 6.7600, followed by 6.7400.”
Next 1-3 weeks: “We have held a negative USD view for more than a week now. Yesterday (17 Jan, spot at 6.7400), we highlighted that downward momentum is beginning to ease and a break of 6.7580 would indicate that the weakness in USD has stabilized. USD subsequently soared to a high of 6.7900. The price actions suggest USD has entered a consolidation phase and will likely trade between 6.7205 and 6.8550 for the time being.”
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.