USD/CNH: Upward momentum has slowed – UOB Group

FXStreet Insights Team FXStreet

Brief decline did not lead to a clear increase in downward momentum; USD is likely to trade in a 7.2550/7.2750 range. In the longer run, upward momentum has slowed; a breach of 7.2500 would indicate that USD has moved into a range trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Below 7.2500, USD to move into a range trading phase

24-HOUR VIEW: "USD dropped to 7.2532 yesterday. The decline was, however, brief, as it rebounded quickly to close largely unchanged at 7.2651 (-0.06%). The brief decline did not lead to a clear increase in downward momentum. Today, instead of continuing to decline, USD is more likely to trade in a 7.2550/7.2750 range."

1-3 WEEKS VIEW: "When USD was at 7.2655 last Wednesday (26 Mar), we highlighted that 'there appears to be enough momentum for USD to rise to 7.2820.' After USD rose to 7.2822, we highlighted on Thursday (27 Mar, spot at 7.2765) that 'momentum has improved further, and USD could continue to rise to 7.2980.' Yesterday, USD fell to a low of 7.2532. Although upward momentum has slowed, only a breach of 7.2500 (no change in ‘strong support’ level from previously) would indicate that USD has moved into a range trading phase."

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 deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.