USD/CNH could now re-visit 6.4900 – UOB

Pablo Piovano FXStreet

Further upside in USD/CNH could test the 6.4900 region in the short-term horizon, commented FX Strategists at UOB Group.

Key Quotes

24-hour view; “Yesterday, we held the view that USD ‘could dip towards 6.4560 first before a rebound can be expected’. USD subsequently dipped to 6.4585 before rebounding strongly to 6.4855. The rebound has gathered momentum and USD is likely to strengthen further. However, the chance for a clear break of 6.4900 is not high (next resistance is at 6.4945). Support is at 6.4750 followed by 6.4700.”

Next 1-3 weeks: “We highlighted yesterday (06 Jul, spot at 6.4645) that USD ‘is expected to consolidate and trade between 6.4480 and 6.4850’. We did not anticipate the increase in volatility as USD rose quickly above the top of our expected range (high of 6.4855). Shorter-term upward momentum has improved and from here, USD is expected to trade with an upward bias towards 6.4900. A break of this level is not ruled out but any further advance is expected to encounter solid resistance at 6.4950. Overall, only a breach of 6.4640 would indicate that the current upward pressure has eased.”

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.