USD/CNH: Major resistance at 7.3700 is not expected to come into view – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) could edge higher to 7.3550 before levelling off; the major resistance at 7.3700 is not expected to come into view. In the longer run, room for USD to retest the 7.3700 level; it is too early to determine if it can break and remain above this level, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Some room for USD/CNH to retest the 7.3700 level

24-HOUR VIEW: “We noted yesterday (Tuesday) that the price action from Monday ‘did not result in an increase in either downward or upward momentum.’ We expected USD to ‘trade in a sideways range of 7.3210/7.3610.’ USD then traded in a narrower range than expected (7.3310/7.3500), closing largely unchanged at 7.3415 (-0.05%). Despite the quiet price action, upward momentum appears to be building, albeit tentatively. Today, USD could edge higher to 7.3550 before levelling off. The major resistance at 7.3700 is not expected to come into view. Support levels are at 7.3350 and 7.3250.”

1-3 WEEKS VIEW: “Yesterday (07 Jan, spot at 7.3465), we pointed out that ‘as long as 7.3050 is not breached, there is room for USD to retest the 7.3700 level.’ We added, ‘at this time, it is too early to determine if USD can break and remain above this level.’ USD then traded in a subdued manner, and we continue to hold the same view for now.”

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 shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold retains positive bias amid sustained safe-haven demand, softer USD

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions ahead of the US-Iran nuclear talks underpin demand for safe-haven assets. Apart from this, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority in the United Kingdom is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.