USD/CNH: Extra advance appears likely once 7.0000 is cleared – UOB

Pablo Piovano FXStreet

USD/CNH needs to clear the 7.0000 hurdle to allow for a more convincing gains, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We indicated yesterday that USD ‘is likely to advance further even though it is left to be seen if it can break the major resistance at 7.0000’. Our expectations for further advance did not materialize as USD traded sideways in a relatively quiet manner between 6.9619 and 6.9850 before closing largely unchanged at 6.9750 (-0.09%). The movement appears to be part of a consolidation and further sideway trading would not be surprising. Expected range for today, 6.9620/6.9880.”

Next 1-3 weeks: “Yesterday (14 Sep, spot at 6.9820), we indicated that while upward momentum is building again, USD has to close above 7.0000 before a sustained advance is likely. We added, ‘support is at 6.9550 but only a breach of 6.9400 would indicate that USD is not ready to move above 7.0000’. There is no change in our view for now.”

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.

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