USD/CNH: A break above 7.1330 is not ruled out – UOB Group

FXStreet Insights Team FXStreet

A break above the major resistance at 7.1330 is not ruled out; a sustained rise above this level seems unlikely for now. In the longer run, there has been an increase in momentum, but the US Dollar (USD) has to break and remain above 7.1350 before a sustained rise is likely, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Bulls are set to push towards 7.1330

24-HOUR VIEW: “While we expected USD to edge higher yesterday, we were of the view that ‘any advance is part of a higher trading range of 7.0850/7.1150.’ However, USD rose more than expected to 7.1250, closing on a firm note at 7.1220 (+0.35%). The increase in momentum is likely to lead to further USD strength. A break above the major resistance at 7.1330 is not ruled out, but a sustained rise above this level seems unlikely for now. Support levels are at 7.1140 and 7.1000.”

1-3 WEEKS VIEW: “Yesterday, when USD was at 7.1020, we indicated that ‘the current price movements are likely part of a sideways trading phase.’ We expect USD ‘to trade between 7.0650 and 7.1350 for the time being.’ USD then rose to 7.1250. There has been an increase in momentum, but not sufficiently enough to suggest the start of a sustained advance. USD has to break and remain above 7.1350 before a sustained rise is likely. The likelihood of USD breaking clearly above 7.1350 is high for now, but it will improve as long as 7.0800 is not taken out. Looking ahead, the next resistance above 7.1350 is at 7.1700.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.