USD/CNH: Near-term consolidation seems on the table – UOB
|According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/CNH could attempt some consolidation ahead of the probable resumption of the upside.
Key Quotes
24-hour view: “We expected USD to ‘trade between 6.7260 and 6.7500’ yesterday. During NY session, USD popped to a high of 6.7480, dropped sharply to 6.7100 before rebounding to close at 6.7253 (-0.19%). The outlook is mixed and further choppy movement is not ruled out, likely between 6.7130 and 6.7430.”
Next 1-3 weeks: “We turned positive USD on Tuesday (12 Jul, spot at 6.7255). Yesterday (13 Jul, spot at 6.7400), we highlighted that USD could consolidate for 1 to 2 days first before moving higher to 6.7700. USD subsequently traded in choppy manner between 6.7100 and 6.7480. While there is no change in our view, the odds for USD to advance to 6.7700 have diminished. From here, a break of 6.7050 (no change in ‘strong support’ level from yesterday) would indicate that USD is not ready to rise to 6.7700.”
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.