USD/CNH: Another visit to 7.0000 starts shaping up – UOB

Pablo Piovano FXStreet

According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, USD/CNH could extend the upside to the 7.0000 region in the near term.

Key Quotes

24-hour view: “After trading sideways to slightly lower for a few days, USD surged to a high of 6.9630 before closing at 6.9628 (+6.9370). While overbought, USD could rise even though it remains to be seen if it can break and stay above 6.9650. The major resistance at 7.0000 is not expected to come under threat. On the downside, a breach of 6.9450 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “In our latest narrative from last Wednesday (26 Apr, spot at 6.9370), we highlighted that upward momentum in USD has improved further but the major resistance at 6.9650 might not come into view soon. USD traded sideways to slightly lower for a few days before soaring to a high of 6.9630 yesterday. Not surprisingly, upward momentum is strong but 6.9650 remains a major resistance and USD has to break and stay above this level before a move to 7.0000 is likely. On the downside, a break of 6.9200 (‘strong support’ level) would indicate that the USD strength that started more than a week ago has come to an end.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.