USD/CNH faces solid resistance at 6.5000 – UOB

The upside momentum in USD/CNH is expected to meet a tough hurdle at the 6.5000 level, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘is unlikely to strengthen much further’ and we expected USD to ‘trade between 6.4680 and 6.4900’. However, USD rose to 6.4946 before pulling back to close largely unchanged at 6.4780 (-0.05%). Despite rising to 6.4946, upward momentum has not improved by much and the chance for a sustained advance in USD today is not high. For today, there is scope for USD to test 6.4950 before the risk of a deeper pullback would increase. The next resistance at 6.5000 is unlikely to come into the picture. On the downside, a break of 6.4700 (minor support is at 6.4740) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “We have expected a stronger USD since early last week. Yesterday (23 Jun, spot at 6.4770), we highlighted that USD ‘could move above 6.4930 but may not be able to maintain a foothold above this major level’. USD subsequently rose to 6.4946 before pulling back. Upward momentum has improved, albeit not by all that much. Further USD strength appears likely but 6.5000 is another major level and is expected to offer solid resistance. On the downside, a breach of 6.4550 (‘strong support’ level was 6.4500 yesterday) would indicate that the current USD strength has run its course.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Indecisive above 1.1700 as Fed tapering looms

EUR/USD retreats towards 1.1700, teasing monthly low for third straight day. Market sentiment improves over Evergrande, US debt limit extension. ECB policymakers cite inflation risks. Fed remains in focus, as it is expected to provide hints on tapering timing.


GBP/USD remains defensive near 1.3650 amid steady USD, Fed eyed

GBP/USD trades virtually unchanged around 1.3650 following the footprint of the previous session. Supply-chain bottlenecks, higher gas prices limited gains for sterling. US dollar remains elevated near 92.30 ahead of the Fed decision.


Gold sees elusive recovery toward $1,780, Fed eyed

Gold prices print minute gains on Wednesday and lack conviction to break $1,780 convincingly due to a sudden uptick in the greenback following a show from the Bank of Japan (BOJ). FOMC volatility, improved risk sentiment exert pressure on the higher side.

Gold News

MATIC price at make or break point as Polygon launches $2 million bounty program

MATIC price has experienced a massive downswing over the past four days and seems to have found temporary relief. If the buyers step in, there is a chance of a minor rally, but failing to do so might trigger a further descent.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question investors have for the Federal Reserve in its all-important September meeting. The bank buys $120 billion worth of bonds every month and it is set to reduce the pace at some point.

Read more