USD/CNH faces further consolidation near-term – UOB

Pablo Piovano FXStreet

USD/CNH is expected to keep the 6.5400-6.5800 range unchanged for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘rise above 6.5700’ was incorrect as it dropped to 6.5456. While downward momentum has not improved by much, there is room for USD to test 6.5400 first before a recovery can be expected. On the upside, a break of 6.5620 would indicate that the current mild downward pressure has eased.”

Next 1-3 weeks: “We continue to hold the same view from yesterday (12 Apr, spot at 6.5630). As indicated, the current movement is viewed as part of a consolidation and USD is expected to trade between 6.5400 and 6.5800 for now. Shorter-term downward momentum has improved somewhat but USD has to close below 6.5400 before a more sustained decline can be expected.”

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.