USD/CNH risks further retracements – UOB
|According to UOB Group’s FX Strategists, USD/CNH faces extra downside in the short-term horizon.
Key Quotes
24-hour view: “Our expectation for USD to ‘trade within a broad range of 6.4100/6.4400’ yesterday was incorrect as it dropped to 6.4039 before rebounding quickly. Downward momentum appears to have eased and this coupled oversold condition suggests limited downside risk from here. For today, USD is more likely to consolidate and trade between 6.4100 and 6.4360.”
Next 1-3 weeks: “We continue to hold the same view as from yesterday (10 May, spot at 6.4220). As highlighted, the risk for USD is still clearly on the downside but in view of the deeply oversold shorter-term conditions, the year-to-date low near 6.3980 may not come into the picture so soon. The downside risk is deemed intact as long as USD does not move above 6.4640 (no change in ‘strong resistance’ level).”
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.