USD/CNH: A break below 7.2800 might weigh the USD – UOB Group

FXStreet Insights Team FXStreet

Barring a break below 7.2920, the US Dollar (USD) could rise and test the major resistance level at 7.3100. USD could break above 7.3100, but it is too early to tell if the next significant resistance at 7.3400 will come into view, UOB Group analysts suggest.

USD is unlikely to break above 7.3100

24-HOUR VIEW: “On Wednesday, USD soared to 7.3080 before pulling back. Yesterday (Thursday), we indicated that ‘the pullback from the high in overbought conditions suggests that instead of continuing to rise, USD is more likely to trade in a range, probably between 7.2920 and 7.3060.’ USD subsequently traded in a narrower range than expected (7.2941/7.3040). Despite the quiet price movements, the underlying tone has improved to some extent. Today, barring a break below 7.2920 (minor support is at 7.2970), USD could rise and test the major resistance at 7.3100. From here, there does not appear to be sufficient momentum for USD to break clearly above this level.”

1-3 WEEKS VIEW: “There have been no significant changes since our update yesterday (27 Jun, spot at 7.2990). As indicated, after the strong advance in USD two days earlier, there is there is still room for USD to rise further. However, while USD could break above 7.3100, it is too early to tell if the next significant resistance at 7.3400 will come into view. Overall, only a breach of 7.2800 (no ‘strong support’ level) would mean that the advance in USD from last has ended.”

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.

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold comes under pressure, still above $4,000 ahead of FOMC

Gold now gives away part of its recent two-day rebound, although a breach below the key $4,000 mark per troy ounce remains elusive for now. Rising crude oil prices keep the precious metal under pressure ahead of the Fed’s interest rate decision later on Wednesday.

Bitcoin Price Forecast: BTC reclaims $81,000 as traders await Fed policy decision, Big Tech earnings

Bitcoin (BTC) reclaimed $81,000 on Wednesday, extending its recovery as investors wait for the Federal Reserve (Fed) monetary policy decision and upcoming Big Tech earnings. Institutional demand showed mild bullish signs, with spot Bitcoin Exchange Traded Funds (ETFs) recording a second consecutive day of inflows this week.

Federal Reserve set to hold interest rates steady despite persistent inflation

The US Fed announces its Interest Rate Decision on Wednesday, following another pivotal meeting that could provide key insights into the bank’s monetary policy outlook heading into the end of the year.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.