USD/CNH seen within the 6.98-7.05 range for the time being – UOB
|USD/CNH is seen navigating between the 6.98-7.05 range in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “While our view that USD ‘could extend its down-move below the strong 7.0150 support’ was not exactly wrong, the swift recovery from a low of 7.0132 was not expected. Downward pressure has eased quickly and from here, USD is likely to trade sideways. Expected range for today, 7.0150/7.0400.”
Next 1-3 weeks: “After USD staged a strong rally last Thursday, we highlighted on Friday (21 Feb, spot at 7.0460) that ‘further USD strength is likely’ but we were of the view ‘it is too early to anticipate a move to the Dec’s peak at 7.0865’. USD subsequently rose to 7.0567 before easing off. The weak opening this morning suggests 7.0567 is likely an interim top. From here, USD could trade sideways for a period, likely between 6.9800 and 7.0500.”
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.