USD/CNH: Likely to recover to 6.9805 – UOB Group

FXStreet Insights Team FXStreet

There is scope for US Dollar (USD) to recover to 6.9805; a continued rise is unlikely. In the longer run, deeply oversold conditions and waning momentum suggest the downside potential could be limited to a test of 6.9590, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Downside potential might be limited to a test of 6.9590

24-HOUR VIEW: "USD fell to a low of 6.9662 last Friday and then recovered to close largely unchanged at 6.9709 (-0.06%). USD continued to recover in the early Asian session today. While it is premature to expect a continued rise, there is scope for USD to rise toward 6.9805. Support levels are at 6.9690 and 6.9650."

1-3 WEEKS VIEW: "The sharp decline in USD last month appears to be overextended. Although there is no clear sign of stabilisation yet, deeply oversold conditions and waning downward momentum, suggests the downside potential could be limited to a test of 6.9590. Conversely, on the upside, if USD breaks above 6.9950 (‘strong resistance’ level), it would indicate that the weakness in USD is stabilising."

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.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.