UOB Group’s FX Strategists noted USD/CNH is expected to keep the side-lined theme between 6.4400 and 6.5000 in the next weeks.
24-hour view: “Our expectation for USD to ‘trade sideways’ yesterday was incorrect as it dropped sharply to 6.4615 before settling on a soft note at 6.4637 (-0.38%). Strong downward momentum suggests that further USD weakness would not be surprising. However, the major support at 6.4500 is unlikely to come into the picture (there is another support at 6.4580). Resistance is at 6.4730 followed by 6.4800.”
Next 1-3 weeks: “We highlighted yesterday that the ‘current movement is viewed as part of a consolidation and USD is likely to trade sideways for now’. We added, ‘looking ahead, the upside risk appears to be greater but USD has to close above 6.5000 before a sustained advance can be expected’. USD subsequently dropped sharply and took out the support at 6.4680. The price actions suggest that USD is still in a consolidation and it could USD could trade sideways between 6.4400 and 6.5000 for now.”
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.