USD/CNH keeps the negative outlook unaltered and could drop to the 6.7660 level in the next weeks.
24-hour view: “While we expected USD to weaken yesterday, we were of the view that it ‘could drift lower’ and ‘the month-to-date low at 6.8143 is unlikely to come under threat’. However, USD plummeted to a low of 6.8057 before extending its decline upon opening this morning. In view of the solid improvement in momentum, further USD weakness would not be surprising even though the next major support at 6.7660 is likely out of reach for today. On the upside, 6.8150 is expected to be strong enough to cap any intraday USD strength.”
Next 1-3 weeks: “Yesterday (14 Sep, spot at 6.8300), we highlighted that ‘as long as 6.8550 (‘strong resistance’ level previously at 6.8800) is intact, there is still a slim chance that USD could push lower towards the support at 6.8000’. However, the speed of the subsequent decline was not exactly expected as USD plummeted to 6.8057 before cracking 6.8000 just a while ago. The sudden surge in momentum indicates that the negative phase that started in mid-August has received a new lease of life. From here, the next level to focus on is at 6.7660 followed closely by 6.7500. Overall, the current negative phase is deemed as intact as long as 6.8300 is not taken out (‘strong resistance’ level was at 6.8550 yesterday).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.