USD/CNH now moved into a consolidative phase – UOB

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.

















