USD/CNH: Bets for a move to 6.5500 looks mitigated – UOB


Prospects for a test of the 6.5500 area in USD/CNH seems to have lost traction, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘trade between 6.5000 and 6.5330’ yesterday. We did not anticipate the sharp drop to 6.4843. The rapid decline appears to be overdone and USD is unlikely to weaken much further. For today, USD is more likely to trade between 6.4820 and 6.5100.”

Next 1-3 weeks: “After the strong surge to 6.5289, we highlighted yesterday (28 Jul, spot at 6.5200) that USD ‘is likely to strengthen further to 6.5500, possibly 6.5880’. We added, ‘the positive outlook for USD is deemed intact as long as USD does not move below 6.4820’. We did not anticipate the rapid manner by which USD gave up most of its gains as it plummeted to an overnight low of 6.4843. Upward momentum has been dented and the prospect for USD to move to 6.5500 has diminished. In order to rejuvenate the flagging momentum, USD has to move and stay above 6.5100 within these few days or a break of 6.4820 (no change in ‘strong support’ level) would indicate that USD is not ready to head higher just yet.”

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Indecisive above 1.1700 as Fed tapering looms

EUR/USD retreats towards 1.1700, teasing monthly low for third straight day. Market sentiment improves over Evergrande, US debt limit extension. ECB policymakers cite inflation risks. Fed remains in focus, as it is expected to provide hints on tapering timing.

EUR/USD News

GBP/USD remains defensive near 1.3650 amid steady USD, Fed eyed

GBP/USD trades virtually unchanged around 1.3650 following the footprint of the previous session. Supply-chain bottlenecks, higher gas prices limited gains for sterling. US dollar remains elevated near 92.30 ahead of the Fed decision.

GBP/USD News

XAU/USD testing bearish commitments at $1780 ahead of Fed

Gold price remains in the green for the fourth day in a row, consolidating the two-day recovery from over one-month lows of $1742.

Gold News

Dogecoin price threatened by 20% sell-off as DOGE bears take control

Dogecoin price appears to be ready for another drop as buyers are nowhere to be found. The prevailing chart pattern suggests that the DOGE plunge is not over yet, as the bears aim for $0.16.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question investors have for the Federal Reserve in its all-important September meeting. The bank buys $120 billion worth of bonds every month and it is set to reduce the pace at some point.

Read more

Forex MAJORS

Cryptocurrencies

Signatures