USD/CNH: Next support at 7.0910 is unlikely to come into view – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) could edge lower to 7.0970; the next support at 7.0910 is unlikely to come into view. In the longer run, downward momentum has increased slightly; for a continued decline, USD must first close below 7.1020, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD might edge lower to 7.0970

24-HOUR VIEW: "We expected USD to 'trade between 7.1100 and 7.1220' last Friday. We were incorrect, as USD fell to a low of 7.1040. Downward momentum is starting to build. Today, we expect USD to edge lower to 7.0970. The next support at 7.0910 is unlikely to come into view. Resistance levels are at 7.1080 and 7.1140."

1-3 WEEKS VIEW: "We highlighted last Thursday (20 Nov, spot at 7.1155) that “for the time being, we expect USD to trade between 7.1020 and 7.1285.” USD dropped to a low of 7.1040 last Friday. Downward momentum has increased slightly, but for a continued decline, USD must first close below 7.1020. The probability of USD closing below 7.1020 will remain intact as long as it holds below the ‘strong resistance’ level, currently at 7.1185. Looking ahead, a close below 7.1020 will shift the focus to 7.0910."

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 holds range near 1.3500 after UK Q2 GDP

GBP/USD keeps its range near the 1.3500 psychological mark in the European session on Thursday. The mixed UK GDP and industrial data failed to inspire the British Pound. Meanwhile, the US Dollar stabilizes after the US CPI data-led sell-off, checking any upside attempts in the pair.

EUR/USD flatlines above 1.1500 as US Dollar stablizes ahead of PPI

EUR/USD is trading modestly flat above 1.1500 in European trading hours on Thursday. The pair stalls its rebound as the US Dollar consolidates losses incurred after the release of July's Consumer Price Index report. Inflation in the US moderated across a broad range of goods and services, cooling expectations for an aggressive Federal Reserve rate hike in September and weighing on the Greenback. The US PPI data is next in focus.

Gold stays weak below $4,400 as USD stalls post-CPI decline

Gold holds its intraday retracement slide from the highest level since June 5 at the $4,450 area touched earlier this Thursday, and trades below the $4,400 mark in the European session. The initial market reaction to signs of moderating US inflation fades quickly as investors remain worried that higher energy prices will rekindle inflationary pressures, pausing the US Dollar's downside.

XRP holds at make-or-break level, ADA and SOL risk 50-day EMA breakout

Top altcoins, including Ripple, Cardano, and Solana, are facing downside pressure, holding at crucial support levels. The technical outlook for XRP, ADA, and SOL indicates a mild bearish bias as downside pressure mounts.

Boring CPI, boring August?

Yesterday’s unexciting US CPI print left FX with little sense of direction into the end-August Jackson Hole Symposium. What can stop this relentless decline in volatility? Gulf news, Fedspeak and big surprises in tier-two data are all possible candidates. But there’s a good chance they won’t, and EUR/USD may stay in tight ranges for the next few weeks.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.