USD/CNH: Likely to consolidate within a range of 7.0680/7.0880 – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) is likely to consolidate within a range of 7.0680/7.0880. In the longer run, downward momentum remains strong; if USD breaks below 7.0600, the next level to watch is 7.0400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Next level to watch for USD/CNH is 7.0400

24-HOUR VIEW: "Yesterday, when USD was at 7.0680 in the early Asian trade, we highlighted the following: 'Strong downward momentum is likely to continue to outweigh oversold conditions. Today, USD could break below 7.0600, but it remains to be seen if it can maintain a foothold below this level. The next support at 7.0400 is unlikely to come into view today. On the upside, resistance levels are at 7.0750 and 7.0830'. Our view was incorrect, as after dropping to a low of 7.0663, USD rebounded to 7.0816 before pulling back to close at 7.0763 (+0.10%). The current price movements are likely part of a consolidation, and today, we expect USD to trade within a range of 7.0680/7.0880."

1-3 WEEKS VIEW: "We turned negative on USD early this week. Tracking the subsequent decline, we indicated yesterday (27 Nov, spot at 7.0680) that 'downward momentum remains strong and if USD breaks below 7.0600, the next level to watch is 7.0400'. Although downward momentum has slowed somewhat with the subsequent rebound, we will continue to hold the same view as long 7.0930 (no change in ‘strong resistance’ level) is not breached."

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 remains on the back foot near 1.1750

EUR/USD is coming under renewed pressure, sliding towards multi-week lows in the mid-1.1700s on Thursday. The move lower reflects another strong session for the US Dollar, with the Greenback drawing fresh support from a batch of firm US data that reinforced its underlying bid.

GBP/USD drops further, hovers around 1.3460

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3440 area, its lowest levels in around four weeks. The move reflects a firmer Greenback, supported by another round of solid US data, while a somewhat divided FOMC Minutes has added an extra layer of uncertainty around the Fed’s rate path, keeping Cable on the defensive.

Gold struggles to overcome $5,000

Gold is trading with humble gains on Thursday, hovering around the key $5,000 mark per troy ounce. The yellow metal remains underpinned by renewed geopolitical tensions in the Middle East, even as a stronger US Dollar and rising US Treasury yields across the curve limit the upside and keep price action relatively contained.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.