USD/CNH: Likely to consolidate between 7.1920 and 7.2150 – UOB Group

FXStreet Insights Team FXStreet

Instead of continuing to rally, US Dollar (USD) is more likely to consolidate between 7.1920 and 7.2150 against Chinese Yuan (CNH). In the longer run, sharp rally appears excessive, but there is a chance for USD to rise further to 7.2250, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Chance for USD to rise further to 7.2250

24-HOUR VIEW: "We expected USD to 'trade in a range of 7.1700/7.1835' yesterday. The subsequent price movements did not turn out as we expected. Rather than trading in a range, USD rallied and closed higher by 0.44% (7.2129), its largest one-day gain in about four months. The sharp rally appears excessive, and instead of continuing to rally, USD is more likely to consolidate today, probably between 7.1920 and 7.2140."

1-3 WEEKS VIEW: "Two days ago (29 Jul, spot at 7.1820), we indicated that 'upward momentum is building, but for a continued advance, USD must first close above 7.1910.' Yesterday, in a sudden move, USD surged to a high of 7.2140 before closing on a strong note at 7.2129 (0.44%). The sharp rally appears to be excessive, but as long as USD holds above 7.1750 (‘strong support’ level previously at 7.1660), there is a chance for it to rise further to 7.2250."

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.

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.