USD/CNH: Likely to trade between 7.1750 and 7.1950 – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) is likely to trade between 7.1750 and 7.1950 against Chinese Yuan (CNH). In the longer run, downward momentum is slowing; a breach of 7.2070 would mean that the downward bias has faded, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Downward momentum is slowing

24-HOUR VIEW: "After USD dropped to 7.1626 two days ago and then rebounded, we indicated yesterday that 'downward pressure appears to have eased, and USD is likely to trade sideways today, probably between 7.1640 and 7.1840.' We did not expect USD to rebound to 7.1935. The rebound lacks momentum, and instead of extending further, USD is likely to trade between 7.1750 and 7.1950."

1-3 WEEKS VIEW: "On Monday (26 May, spot at 7.1770), we indicated that 'while downward momentum has not increased significantly, as long as 7.2070 (‘strong resistance’ level) is not breached, the bias for USD is on the downside toward 7.1500.' USD subsequently dropped to 7.1626 and then rebounded. Yesterday, it rebounded further to 7.1935. While downward momentum is beginning to slow, only a breach of 7.2070 (no change in ‘strong resistance’ level) would mean that the downward bias has faded."

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.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro clings to the bid bias above 1.1500

EUR/USD has picked up pace, reversing Monday’s decline and advancing past the 1.1500 barrier on Tuesday. In the meantime, hopes for a diplomatic solution to the Middle East crisis keep the US Dollar under modest downside pressure, helping spot in its recovery.

Coinbase Bitcoin Premium Index extends historical negative streak as risk appetite deteriorates

The Coinbase Bitcoin Premium Index extends its negative streak to 78 consecutive days on Tuesday, the longest on record. This reading comes amid the ongoing bearish trend, which has seen Bitcoin (BTC) drop by almost 50% from its record high to trade around $64,000.

Why the WTI sell-off may be hiding a supply warning

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.