USD/CNH could attempt a move to 7.1000 – UOB

Pablo Piovano FXStreet

In view of FX Strategists at UOB Group, the outlook on USD/CNH stays positive and a test of 7.1000 in the next weeks looks probable.

Key Quotes

24-hour view: “We clearly did not expect the sudden and strong rally in USD yesterday. The rapid rise is running ahead of itself and while USD could move above the NY high of 7.0865, a sustained rise above this level appears unlikely. On the other hand, after the strong surge, it is too early to expect a significant pull-back. Overall, USD is likely to trade sideways to slightly higher from here, expected to be between 7.0550 and 7.0900”.

Next 1-3 weeks: “After trading mostly sideways for the past several weeks, USD staged a sudden and outsized rally of +0.32% (7.0652). While the ease by which strong resistance levels were taken out has shifted the risk to the upside, we are not convinced USD can maintain the pace of the current rally. From here, we see chance for USD to test the 7.1000 resistance but the prospect for a sustained rise above the major 7.1200 level is not high. Overall, USD is expected to trade on firm footing unless it drops below the ‘strong support’ level of 7.0400”.

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.