USD/CNH: Corrective pullback still in place – UOB

Pablo Piovano FXStreet

While below 6.5700, USD/CNH could re-visit the 6.5150 level in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for ‘the weakness in USD has room to extend to 6.5300’ did not materialize as it traded in a quiet manner between 6.5388 and 6.5525. The underlying tone has firmed somewhat and this could lead to USD edging upwards towards 6.5630. A sustained advance above this level is unlikely. Support is at 6.5450 followed by 6.5400.”

Next 1-3 weeks: “We continue to hold the same from yesterday (07Apr, spot at 6.5425). As highlighted, the current movement is viewed as the early stages of a corrective pullback. Barring a move above the ‘strong resistance’ level of 6.5700, the pullback could extend to 6.5150.”

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.

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