USD/CNH: A break above 7.3000 can lead to 7.3100 eventually – UOB Group

FXStreet Insights Team FXStreet

The US Dollar (USD) is likely to edge higher. Any advance is unlikely to reach the major resistance at 7.3000 and 7.3100, UOB Group analysts note.

Below 7.2700 USD to turn lower

24-HOUR VIEW: “We noted yesterday that ‘the price movements still appear to be part of a sideways trading phase.’ We expected USD to trade in a range of 7.2750/7.2910. USD then traded in a slightly narrower range between 7.2763 and 7.2907. Despite the quiet price action, there has been a slight increase in momentum. Today, USD is likely to edge higher, but any advance is unlikely to reach the major resistance at 7.3000. Note that there is another resistance level at 7.2945. Support levels are at 7.2830 and 7.2780.”

1-3 WEEKS VIEW: “We have expected USD to strengthen since early last week. In our latest update from last Friday (21 Jun, spot at 7.2920), we indicated that ‘further USD strength is likely, and the resistance levels to watch are 7.3000 and 7.3100.’ While USD has not been able to make any further headway on the upside, we continue to hold the same view for now. However, if USD breaks below 7.2700 (no change in ‘strong support’ level), it would mean that USD is not strengthening further.”

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: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro clings to the bid bias above 1.1500

EUR/USD has picked up pace, reversing Monday’s decline and advancing past the 1.1500 barrier on Tuesday. In the meantime, hopes for a diplomatic solution to the Middle East crisis keep the US Dollar under modest downside pressure, helping spot in its recovery.

Coinbase Bitcoin Premium Index extends historical negative streak as risk appetite deteriorates

The Coinbase Bitcoin Premium Index extends its negative streak to 78 consecutive days on Tuesday, the longest on record. This reading comes amid the ongoing bearish trend, which has seen Bitcoin (BTC) drop by almost 50% from its record high to trade around $64,000.

Why the WTI sell-off may be hiding a supply warning

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.