USD/CNH faces firm hurdle at 6.4070 – UOB

Pablo Piovano FXStreet

Further upside in USD/CNH is expected to meet a tough barrier at 6.4070 in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “We noted yesterday that ‘momentum indicators are mostly flat’ and we expected USD to ‘trade sideways within a range of 6.3770/6.3970’. Our view for sideway-trading was not wrong even though USD traded within a narrower range than expected (6.3835/6.3948). The quiet price actions offer no fresh clues and USD could continue to trade sideways. Expected range for today, 6.3800/6.3970.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (23 Nov, spot at 6.3865). As highlighted, while shorter-term momentum appears to be building, USD to move and stay above 6.3970 soon or the build-up in momentum would fizzle out quickly. On the downside, a breach of 6.3750 (no change in ‘strong support’ level) would indicate that the build-up in momentum has fizzled out.”

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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