USD/CNH: Consolidate in recent range – OCBC

FXStreet Insights Team FXStreet

USD/CNH firmed but levels remain within recent range. Pair was last at 7.2916 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Consolidation likely in recent range

“Bearish momentum on daily chart shows signs of fading while RSI rose. Consolidation likely in recent range as steady PBoC daily fixing (under 7.20) suggests policymakers are looking for relative stability. Resistance at 7.2940, 7.3150 levels. Support at 7.2640 (21 DMA), 7.2340 (23.6% fibo retracement of Sep low to Dec high) and 7.2040 (200 DMA).”

“2-day CEWC had concluded last week, with little signs of stimulus support measures. FOMC event risk this week may have influence on USD’s directional bias. But in the interim, we expect policymakers will continue to keep the RMB contained.”

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.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.