USD/CNH: Likely to trade in a range between 6.9720 and 6.9920 – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) is likely to trade in a range between 6.9720 and 6.9920. 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: "Yesterday, when USD was at 6.9735, we indicated that 'there is scope for USD to recover to 6.9805'. However, we pointed out that 'a continued rise above this level is unlikely'. USD rebounded more than expected to 6.9915 before pulling back to close at 6.9827 (+0.17%). Upward momentum has eased with the pullback, and today, we expect USD to trade in a range, most likely between 6.9720 and 6.9920."

1-3 WEEKS VIEW: "We noted yesterday (05 Jan, spot at 6.9735) that 'the sharp decline in USD last month appears to be overextended'. We also highlighted that 'although there is no clear sign of stabilization yet, deeply oversold conditions and waning downward momentum, suggests the downside potential could be limited to a test of 6.9590'. We will maintain the same view as long as 6.9950 (no change in ‘strong resistance’ level from yesterday) 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.

AUD/USD stays bid above 0.7100 on Australian trade data, Mideast optimism

AUD/USD clings to minor recovery gains above 0.7100 in the Asian session on Thursday as a new Israel-Lebanon ceasefire keeps a lid on the safe-haven US Dollar. Meanwhile, strong AustralianTrade Balane data also help the Aussie pair sustain the bounce from weekly lows.

USD/JPY hovers near the 160.00 intervention threshold on Mideast tensions

USD/JPY struggles to find acceptance above 160.00 and retreats from a one-month high in the Asian session on Thursday amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, a new Israel-Lebanon ceasefire caps the US Dollar and supports the currency pair. However, renewed US-Iran tensions keep the downside limited in the Greenback and the pair.

Gold defends 200-day SMA; upside seems capped on Iran uncertainty

Gold recovers from a one-week low near $4,425, or the 200-day SMA, in the Asian session on Thursday, as news of an Israel-Lebanon ceasefire acts as a headwind for the safe-haven US Dollar. However, renewed hostilities in the Gulf, along with stalled US-Iran peace talks, keep geopolitical risks in play and should support the USD, checking the Gold price rebound.

Bitcoin drops below $65K amid reinforced bear market signals

Bitcoin dipped further below $65,000 on Wednesday, with onchain data from Glassnode signaling a market firmly in a bear phase. The decline has pushed prices back into a key valuation range between the Realized Price and the True Market Mean. Glassnode noted that a key shift in market structure has also emerged.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.