USD/CNH: Negative phase expected to end above 6.4900 – UOB
|FX Strategists at UOB Group noted USD/CNH’s negative phase is seen ending above 6.4900.
Key Quotes
24-hour view: “Last Friday, we expected USD to ‘move lower to 6.4550 first before a recovery can be expected’. Our expectation did not materialize as USD rebounded from 6.4617 (high has been 6.4745). The current movement is viewed as part of a consolidation phase and USD is likely to trade between 6.4650 and 6.4800 for today.”
Next 1-3 weeks: “We have held a negative view in USD since mid-April. In our latest narrative from last Thursday (29 Apr, spot at 6.4650), we highlighted that ‘boost in downward momentum could lead to further USD weakness towards 6.4410’. However, USD has not been able to make much headway to the downside and downward momentum is beginning to wane. From here, a break of 6.4900 (no change in ‘strong resistance’ level) would indicate that the negative phase has ended.”
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.