USD/CNH seen struggling near 6.5000 – UOB
|UOB Group’s FX Strategists see USD/CNH facing a tough resistance in the vicinity of 6.5000 in the near term.
Key Quotes
24-hour view: “We highlighted yesterday that USD ‘could edge above 6.4800 but the major resistance at 6.4930 is not expected to come under threat’. Our view was not wrong as USD rose to 6.4860 before pulling back. Upward momentum is beginning to wane and this coupled with overbought conditions suggests that USD is unlikely to strengthen much further. For today, USD is more likely to trade between 6.4680 and 6.4900.”
Next 1-3 weeks: “We have expected a stronger USD since early last week. Our view was not wrong and in our update yesterday (22 Jun, spot at 6.4690), we indicated that USD is still strong but ‘overbought conditions suggest that 6.4930 may not come into the picture so soon’. While USD rose to 6.4860 during NY session, shorter-term momentum appears to be struggling. That said, USD could move above 6.4930 but may not be able to maintain a foothold above this major level (next resistance is at 6.5000). On the downside, a breach of 6.4500 (‘strong support’ level was 6.4400 yesterday) would indicate that the current USD strength has run its course.”
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.