USD/CNH is now seen within 7.3050-7.3470 range – UOB

Pablo Piovano FXStreet

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang argue that USD/CNH is now expected to navigate between 7.3050 and 7.3470 in the short term.

Key Quotes

24-hour view: We expected USD to trade in a range between 7.3020 and 7.3240 yesterday. However, after dipping to a low of 7.3074, USD rose strongly to a high of 7.3308. The rapid rise has scope to advance there does not appear to have enough momentum for USD to reach 7.3470 today (there is another resistance at 7.3350). Support is at 7.3220, followed by 7.3150.

Next 1-3 weeks: Two days ago (24 Oct, spot at 7.3080), we indicated that “downward momentum is building, but USD has to break clearly below 7.2850 before a sustained decline is likely.” We added, “the chance of USD breaking clearly below 7.2850 will remain intact as long as it stays below 7.3260 in the next few days.” Yesterday, USD rose above 7.3250 (high has been 7.3308). The momentum buildup has faded. USD is likely to trade in a range for the time being, likely between 7.3050 and 7.3470.

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.