USD/CNH could now test the 7.0500 region – UOB

Pablo Piovano FXStreet

The continuation of the bullish move could push USD/CNH to the 7.0500 area in the near term, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “The strong surge in USD to a high of 6.9991 came as a surprise (we were expecting USD to consolidate). USD continues to rise as it broke above 7.0000 in early Asian trade. Despite the break of the solid resistance at 7.0000, there is no significant increase in momentum. Today, USD could strengthen further but the next major resistance at 7.0500 is unlikely to come into view (minor resistance is at 7.0200). Support is at 6.9850, followed by 6.9750.”

Next 1-3 weeks: “Our most recent narrative was from last Thursday (11 May, spot at 6.9330) where we indicated that ‘upward momentum is beginning to build and USD is likely to trade with an upward bias’. However, we noted that both 6.9750 and 7.0000 are strong resistance levels. After holding below 6.9750 for a few days, USD jumped above this level and soared to a high of 6.9991 in NY trade before taking out 7.0000 today. The price actions continue to suggest the risk for USD is to the upside. The next level to watch is 7.0500. Overall, we will continue to hold a positive USD view as long as it holds above 6.9560 (‘strong support’ level previously at 6.9400).”

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 looks mildly offered below 1.1750

EUR/USD comes under some mild selling pressure on Friday, partially fading Thursday’s strong pullback and revisiting the 1.1740 region on the back of a humble recovery in the US Dollar. Later in the day, investors’ attention will be on the release of US flash PMIs for the month of January.

GBP/USD flirts with two-week tops around 1.3530

GBP/USD extends its weekly firm performance and challenges the area of two-week peaks around 1.3530 on the back of a tepid bounce in the Greenback. Positive results from UK Retail Sales and preliminary PMIs appear to reinforce Cable's solid gains so far on Friday.

Gold shifts its focus to $5,000

Gold prices hit a record high near $4,970 per troy ounce earlier on Friday, leaving the door wide open to a potential test of the key $5,000 barrier. The Greenback’s inconclusive price action and shrinking US Treasury yields across the curve add to the yellow metal’s rally so far on Friday.

Bitcoin, Ethereum, and XRP face elevated downside risk amid weak technical setups

Bitcoin is struggling to stay above support at $89,000 at the time of writing, as headwinds intensify across the cryptocurrency market on Friday. Ethereum and Ripple are facing low retail and institutional demand, while bearish indicators continue to flash subtle signals that losses may extend further.

Week ahead – Fed and BoC meet amid geopolitical upheaval and Trump’s Fed pick

Fed to likely go on pause after three straight cuts. BoC is also expected to stand pat. But will Trump steal the limelight by revealing his Fed chair nomination?

Tron Price Analysis: TRX extends gains as bullish breakout structure remains intact

Tron (TRX) price extends its gains, trading above $0.30 at the time of writing on Friday after retesting the previously broken bullish breakout structure earlier this week. The positive on-chain and derivatives data back the bullish price action.