Further selling pressure appears likely in USD/CNH in the next weeks, note UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang.
24-hour view: “Yesterday, we expected USD to ‘trade sideways within a range of 6.7690/6.8000’. USD subsequently rose to a high of 6.7975, dropped to 6.7629 before closing at 6.7676 (-0.28%). Downward momentum is beginning to build and the risk for USD today is to the downside. While a break of the major support at 6.7500 would not be surprising, the next support at 6.7000 is unlikely to come into view. On the upside, a breach of 6.7920 (minor resistance is at 6.7800) would indicate that the current downward pressure has eased.”
Next 1-3 weeks: “There is not much to add to our update from Tuesday (10 Jan, spot at 6.7850). As highlighted, USD is likely to continue to weaken and a break of 6.7500 will shift the focus to 6.7000. Overall, only a breach of 6.8250 (‘strong resistance’ level was at 6.8350 yesterday) would indicate that the USD weakness that started last week has ended.”
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD retreats from 1.0900 as DXY recovers modestly
EUR/USD erased daily gains during the American session as Wall Street moved off highs. The deterioration in market sentiment is helping the US Dollar look less weak. As a result, the pair is moving further away from the seven-week high of 1.0929 toward 1.0850.
GBP/USD stabilizes around 1.2300 on BOE day
Following a pullback with the initial reaction to the Bank of England's policy announcements, GBP/USD has regained its traction and climbed above 1.2300. The pair remains on track to post gains for the second straight day as the US Dollar struggles to find demand.
Gold: XAU/USD approaches $2,000 amid broad US Dollar weaknes Premium
Spot gold retains its positive momentum and trades around $1,995 a troy ounce on Thursday. XAU/USD is extending its post-Fed advance, as the American central bank came out with a dovish message on Wednesday, triggering a dollar’s sell-off.
Breaking: Terraform Labs founder Do Kwon arrested in Montenegro: Interior minister
Terraform Labs' founder Do Kwon is arrested, according to Minister of Interior of Montenegro Filip Adzic. This is a developing story and will updated
Ford (F) Stock News and Forecast: $3 billion EV loss leads shares to advance
Ford (F) stock is demonstrating on Thursday exactly why automotive C suites are pivoting to electric vehicles. It is not because of the environment or due to easy profits. It is because the market likes it.