USD/CNH to test 7.1165 before the risk of a recovery increases – UOB Group

FXStreet Insights Team FXStreet

There is scope for US Dollar (USD) to test 7.1165 before the risk of a recovery increases. In the longer run, for the time being, USD is likely to trade in a range between 7.1000 and 7.1480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD is likely to trade in a range between 7.1000 and 7.1480

24-HOUR VIEW: "Our view of range-trading yesterday was incorrect, as USD fell sharply to a low of 7.1169 (-0.16%). While the decline appears excessive, there is scope for USD to test 7.1165 before the risk of a recovery increases. Based on the current momentum, we do not expect the next support at 7.1000 to come into view. On the upside, resistance levels are at 7.1350 and 7.1400."

1-3 WEEKS VIEW: "We turned positive on USD early last week (see annotations in the chart below). In our latest narrative from last Friday (26 Sep, spot at 7.1435), we highlighted that 'upward momentum continues to increase, and if USD breaks above 7.1500, the next level to watch is 7.1600.' Yesterday, in a sudden move, USD fell and broke below our ‘strong support’ level at 7.1250 (low has been 7.1169). The breach of our ‘strong support’ level indicates that upward momentum has faded. The current price movements are likely part of a range-trading phase. For the time being, USD is likely to trade in a range between 7.1000 and 7.1480."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.