USD/CNH: Downward bias alleviated above 6.9300 – UOB

Pablo Piovano FXStreet

The selling pressure around USD/CNH is expected to mitigate on a breakout of 6.9300, said UOB Group Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘appears to have moved into a consolidation phase and it is likely to trade between 6.8650 and 6.9050’. USD subsequently traded between 6.8722 and 6.9139 before closing slightly higher at 6.8940 (+0.16%). While the underlying tone has firmed somewhat, the price movements still appear to be consolidative. Today, we expect USD to trade in a range, likely between 6.8750 and 6.9100.”

Next 1-3 weeks: “After USD fell sharply on Monday, we highlighted on Tuesday (14 Mar, spot at 6.8600) that the ‘impulsive drop in USD is likely to continue’. However, USD has not been able to make any further headway on the downside. While the downside risk has decreased, only a break of 6.9300 (no change in ‘strong resistance’ level) would indicate that USD is not weakening further. Looking ahead, support level is at 6.8350.”

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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.