USD/CNH: Likely to trade between 7.1220 and 7.1320 – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) is likely to trade between 7.1220 and 7.1320. In the longer run, USD could drop to 7.1130; a clear break below this level will shift the focus to 7.1000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH might drop to 7.1130

24-HOUR VIEW: "We expected USD to 'trade between 7.1180 and 7.1310' yesterday. However, USD traded in a tight range of 7.1244/7.1298. The price action provides no fresh clues. Today, we expect USD to trade between 7.1220 and 7.1320."

1-3 WEEKS VIEW: "In our most recent narrative from last Friday (17 Oct, spot at 7.1220), we indicated that USD 'could drop to 7.1130'. We added, 'a clear break below this level will shift the focus to 7.1000.' Although USD has not been able to make much headway to the downside, we will continue to hold the same view as long as the ‘strong resistance’ at 7.1400 (no change in 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 eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.