USD/CNH: Negative phase ended? – UOB
|UOB Group’s FX Strategists suggested that USD/CNH could have now moved into a consolidation range between 6.4650 and 6.5020.
Key Quotes
24-hour view: “Our view for USD to trade sideways was incorrect as it popped up to an overnight high of 6.4912 before pulling back quickly. The pullback could extend lower but sustained decline below 6.4740 is unlikely. Resistance is at 6.4880 followed 6.4920.”
Next 1-3 weeks: “We have held a negative view in USD since mid-April. In our latest narrative from Monday (03 May, spot at 6.4700), we highlighted that ‘downward momentum is beginning to wane and a break of 6.4900 would indicate that the negative phase has ended’. The ‘strong resistance’ level at 6.4900 was breached yesterday as USD popped to a high of 6.4912. While the negative phase is deemed to have ended, it is too soon to expect a recovery. From here, USD is expected to trade between 6.4650 and 6.5020 for period of time. Looking ahead, a clear break of 6.5020 would indicate that USD is ready for a sustained and sizeable rebound.”
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.