USD/CNH must close above 7.1910 for a continued advance – UOB Group

FXStreet Insights Team FXStreet

Upward momentum is building, but for a continued advance, US Dollar (USD) must first close above 7.1910, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum is building

24-HOUR VIEW: "We expected USD to 'continue to rise' yesterday, but we stated that 'overbought conditions indicate that the major resistance at 7.1910 could be out of reach for now.' However, USD traded in a tight range between 7.1774 and 7.1848, closing unchanged at 7.1813. The price movements are likely part of a range trading phase. Today, we expect USD to trade between 7.1700/7.1835."

1-3 WEEKS VIEW: "Subsequent to USD price action two days ago, we indicated the following yesterday (29 Jul, spot at 7.1820): 'Upward momentum is building, but for a continued advance, USD must first close above 7.1910. The likelihood of USD closing above 7.1910 will increase in the coming days as long as it holds above 7.1660.' We continue to hold the same view."

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 sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold looks slightly bid above $4,000

Gold manage to regain some balance, leaving behind two daily drops in a row and reclaiming the key $4,000 mark per troy ounce and above on Monday. The better tone in the US Dollar and mixed US Treasury yields accompany the precious metal’s uptick, while declining crude oil prices appear to sustain the bounce for now.

Bitcoin stalls around $80,000 as geopolitical tensions dampen risk appetite

Bitcoin hovers around $80,500 on Monday after three straight weeks of correction. Rising geopolitical tensions in the Middle East continue to push oil prices higher, stoking inflation concerns and dampening risk appetite.

Everyone's bracing for a hawkish central bank week. Here's why the surprise could be dovish

Five of the world's major central banks are preparing to announce monetary policy decisions this week, with investors increasingly anticipating higher interest rates as the global energy shock continues to push inflation above target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.