USD/CNH is likely to edge higher – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) is likely to edge higher, potentially breaking above 7.1550. In the longer run, the price action suggests that USD could rise toward 7.1650, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH can potentially breake above 7.1550

24-HOUR VIEW: "We expected USD to 'trade in a range between 7.1340 and 7.1480' yesterday. USD then traded in a range of 7.1362/7.1490, closing at 7.1463 (+0.07%). There has been a tentative buildup in momentum and today, USD is likely to edge higher, potentially breaking above 7.1550. The next resistance at 7.1650 is unlikely to come under threat. To maintain the buildup in momentum, USD must not break below 7.1380, with minor support at 7.1420."

1-3 WEEKS VIEW: "In our most recent narrative was from two days ago (06 Oct, spot at 7.1400), we highlighted that 'upward momentum is starting to build, but for a continued advance, USD must first break and hold above 7.1480.' Yesterday, USD rose to a high of 7.1490 before closing at 7.1463. While we would have preferred a more decisive close above 7.1480, the price action suggests that USD could rise toward 7.1650. On the downside, a breach of 7.1330 would indicate that the buildup in momentum has eased."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.