USD/CNH now seen re-testing the 7.0350 level – UOB

Pablo Piovano FXStreet

In light of the recent price action, FX Strategists at UOB Group now believe USD/CNH could head to the 7.0350 level in the next weeks.

Key Quotes

24-hour view: “The sudden lurch in USD that hit a low of 7.0492 was unexpected. The sharp and rapid decline appears to be running ahead of itself and further weakness in USD appears unlikely. From here, USD could edge slightly higher but any advance is viewed as part of a 7.0550/7.0900 range.”

Next 1-3 weeks: “While we noted yesterday (07 Apr, spot at 7.1055) that the ‘prospect for a break of 7.1700 continues to diminish’, the sudden and sharp drop in USD that sent it tumbling to 7.0492 came as a surprise. The breach our ‘strong support’ level at 7.0550 (low of 7.0492) indicates that last month’s 7.1652 high could remain as a top for a while more. In other words, the risk from here has shifted to the downside. Only a move back above 7.1120 would indicate our view for USD to move to 7.0350 is wrong.”

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.