USD/CNH: Rising odds for extra decline – UOB
|USD/CNH could weaken further on a close below the 7.0500 level, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Expectation for USD to strengthen was wrong as it traded in a volatile manner between 7.0510 and 7.0884. Downward pressure has picked up and from here, a break of 7.0500 could lead to further USD weakness towards 7.0450. For today, 7.0350 is likely out of reach. Resistance is at 7.0620 followed by 7.0690.”
Next 1-3 weeks: “We have held the same view since last Monday (15 Jun, spot at 7.0880) that USD is in a consolidation phase and is likely to trade between 7.0500 and 7.1250. USD subsequently traded mostly sideways but dropped to low of 7.0510 yesterday. Downward momentum is stirring to life and from here, if USD closes below 7.0500, it could weaken to 7.0350. The prospect for such a scenario is quite high and it would continue to increase unless USD moves back above 7.0800 within these few days.”
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.