USD/CNH: No changes to the consolidative mood – UOB
|FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang believe USD/CNH could extend the 6.6600-6.7400 range in the next few weeks.
Key Quotes
24-hour view: “Yesterday, we highlighted that ‘the underlying tone has firmed somewhat and USD could edge higher but 6.7200 is unlikely to come into the picture’. While our view for USD to strengthen was not wrong, we did not expect the sharp rise to 6.7340. However, the advance was short-lived as USD pulled-back swiftly from the high. The pullback amidst overbought conditions suggest that USD is unlikely to advance further. For today, USD is more likely to trade between 6.6900 and 6.7300.”
Next 1-3 weeks: “On Monday (20 Jun, spot at 6.7080), we highlighted that USD is likely to trade between 6.6600 and 6.7400. There is no change in our view for now. That said, shorter-term upward momentum has improved somewhat and this could lead to a test of 6.7400. Looking ahead, a clear break of 6.7400 could lead to a move towards 6.7600.”
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.