USD/CNH risks further decline below 6.4240 – UOB
|UOB Group’s FX Strategists see extra losses in USD/CNH picking up pace if 6.4240 is cleared.
Key Quotes
24-hour view: “We did not expect the sharp sell-off that sent USD plunging to 6.4250. While already oversold, the weakness in USD has not stabilized. From here, USD could retest the 6.4240 level before stabilization can be expected. For today, a sustained decline below 6.4240 appears unlikely. Resistance is at 6.4420 followed by 6.4480.”
Next 1-3 weeks: “We have held the same view since last Wednesday (06 Oct, spot at 6.4500) where USD is likely to trade between 6.4240 and 6.4800 for a period of time. After trading in a choppy manner for several days, USD plummeted to 6.4250 yesterday (13 Oct). Downward momentum is beginning to build but USD has to close below 6.4240 before a sustained decline can be expected (next support is at 6.4100). The chance for USD to close below 6.4240 is quite high as long as it does not move above the ‘strong resistance’ level (currently at 6.4540) 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.