USD/CNH: Probable drop to the 7.1150 area – UOB
|UOB Group’s FX Strategists noted USD/CNH could grind lower to the 7.1150 region in the next weeks.
Key Quotes
24-hour view: “Our expectation for USD to ‘extend lower towards 7.1150’ did not materialize as it only touched 7.1234. The underlying tone still appears to be soft and we continue to see chance for a dip to 7.1150 first before a more sustained recovery can be expected. Resistance is at 7.1400 followed by 7.1500.”
Next 1-3 weeks: “The sudden sharp sell-off in USD last Friday took out our ‘strong support’ level at 7.1400. The break of the ‘strong support’ indicates that the positive phase in USD that started on Thursday (28 May, spot at 7.1800) ended much sooner than expected. The sharp but short-lived advance has resulted is a mixed outlook. From here, USD could trade sideways between 7.0950 and 7.1750 for a period.”
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.