UOB Group’s FX Strategists noted USD/CNH faces sustainable losses on a breach of 6.4240 in the next weeks.
24-hour view: “USD traded between 6.4415 and 6.4584 yesterday, narrower than our expected range of 6.4300/6.4600. The underlying tone has firmed somewhat and USD could edge higher to 6.4630. The next resistance at 6.4700 is unlikely to come into the picture. Support is at 6.4460 followed by 6.4400.”
Next 1-3 weeks: “After the sharp drop in USD last Friday, we indicated yesterday (04 Oct, spot at 6.4550) that ‘while downward momentum has improved somewhat, it appears too soon to expect a sustained decline in USD’. We added, ‘looking ahead, USD has to close below 6.4240 before a sustained decline can be expected’. USD subsequently rebounded but as long as 6.4800 is intact, the risk of USD closing below 6.4240 is intact. A break of 6.4800 would indicate that USD could trade sideways within a broad range for a period of time.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.