USD/CNH still looks for a test of 6.5200 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group still believe USD/CNH could edge higher to the 6.5200 area in the next weeks.

Key Quotes

24-hour view: “USD dropped to 6.4746 before closing lower at 6.4810 (-0.23%). The underlying tone has weakened and there is room for USD to test 6.4650 first before a recovery can be expected. Resistance is at 6.4860 followed by 6.4970.”

Next 1-3 weeks: “We highlighted on Monday (18 Jan, spot at 6.4680) that ‘upward momentum is beginning to improve and a clear break of 6.4900 could lead to a move to 6.5200’. While USD subsequently broke 6.4900, it retreated quickly after touching 6.5075. Upward momentum has been dented somewhat but there is still chance for USD to move 6.5200. Only a break of 6.4450 (no change in ‘strong support’ level) would indicate that USD is not ready to move to 6.5200 just yet.”

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.

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