USD/CNH now looks to a test of 6.8000 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang see USD/CNH advancing further with the next target at 6.8000 in the short-term.

Key Quotes

24-hour view: “Our expectations for USD to ‘trade in a choppy manner between 6.7130 and 6.7430’ turned out to be incorrect as USD surged to high of 6.7910 before pulling back sharply. Despite the pullback, upward momentum still appears to be firm and USD could retest the 6.7900 level. For today, the chance for USD to move to the major resistance at 6.8000 is not high. Support is at 6.7460 followed by 6.7330.”

Next 1-3 weeks: “We turned positive USD on Tuesday (12 Jul, spot at 6.7255). On Wednesday (13 Jul, spot at 6.7400), we highlighted that USD could consolidate for 1 to 2 days first before moving higher to 6.7700. Yesterday (14 Jul), USD surged past 6.7700 and rose to 6.7910 before pulling back. The improved upward momentum suggests that USD is likely to advance further. The next level to monitor is at 6.8000. Overall, the positive outlook for USD is intact as long as it does not move below 6.7190 (‘strong support’ level was at 6.7050 yesterday). Looking ahead, if USD breaks above 6.8000, it would increase the risk of a move towards the May’s high near 6.8390.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.