USD/CNH now moved into a consolidative phase – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, USD/CNH is now likely to navigate within the 6.4480-6.4850 range in the next weeks.

Key Quotes

24-hour view: “Our expectation for USD to ‘trade between 6.4670 and 6.4810’ was incorrect as it dropped to 6.4596 before rebounding to close little changed at 6.4659 (-0.09%). Downward momentum has improved a tad and USD could dip towards 6.4560 first before a rebound can be expected. The major support at 6.4480 is not expected to come into the picture. On the upside, a breach of 6.4740 (minor resistance is at 6.4700) would indicate that the downward pressure has eased.”

Next 1-3 weeks: “We highlighted yesterday (05 Jul, spot at 6.4730) that ‘the prospect for USD to move clearly above 6.4950 has diminished considerably’. We added, ‘only a break of 6.4590 would indicate that the upside risk has dissipated’ USD subsequently dropped to within a few pips of 6.4590 (low of 6.4596). While 6.4590 is still intact, upward pressure has dissipated and from here, USD is expected to consolidate and trade between 6.4480 and 6.4850.”

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.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.