USD/CNH could drop further and test 6.84 – UOB


In opinion of FX Strategists at UOB Group, USD/CNH is seen losing further ground and testing the 6.84 region in the next weeks.

Key Quotes

24-hour view: “Our current rhetoric of ‘with oversold conditions, it is likely that the spot rate would transit next into a sideways pattern going forth’ seems to be panning out well, USD stabilizing at around 6.9000 on Wed. That said, upward momentum is underwhelming and a sustained recovery above 6.9000 remains unlikely. Resistance is at 6.9030 and 6.9120. On the downside, the next key support is at 6.8720 but it should be out of reach today.”

Next 1-3 weeks: “In our previous update on 13-Jan, we cited that ‘upon a NY close below 6.9000, the next support at 6.8800 may come into focus quickly.’ USD touched a low of 6.8802 on Mon and slipped further on Tue morning. While the down-move is becoming increasingly stretched, it appears that USD may still have scope to decline towards 6.8400 in the coming sessions. On the topside, expect resistances 6.9250 and 6.9370. Overall, USD is expected to stay on the back foot unless it can reclaim 6.9500.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pressured under 1.11 amid virus fears, ahead of the ECB

EUR/USD is trading below 1.11, under pressure as fears of the coronavirus weigh on markets. The ECB is set to leave rates unchanged and provide views about the current economic environment. 

EUR/USD News

GBP/USD consolidates gains above 1.31 after parliament seals Brexit

GBP/USD is trading above 1.31, consolidating its gains. The House of Lords gave its final seal to Brexit. Speculation ahead of the BOE's decision continues after upbeat data diminished chances for an imminent move.

GBP/USD News

Forex Today: Coronavirus fears spread and weigh on markets, Aussie surges, all eyes on the ECB

Chinese authorities have shut down access links to Wuhan, the large provincial capital where the coronavirus originates from. The news, coming ahead of the Chinese Lunar New Year, is weighing on markets. 

Read more

WTI hits 7-week low, potential bull RSI divergence on 1H

WTI oil fell to $55.68 soon before press time, the lowest level since Dec. 3, having declined by 3.73% on Wednesday. The black gold has found acceptance below $56.60, which is the 61.8% Fibonacci retracement (one of the golden ratio) of the rally from $51.03 to $65.62.

Oil News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures