- Analytics
- News and Tools
- Market News
- USD/CNH risks a deeper pullback - UOB
USD/CNH risks a deeper pullback - UOB
FXStreet reports that Quek Ser Leang at UOB Group’s Global Economics & Markets Research assesses the prospect for USD/CNH.
“In the FX Technical section of our Quarterly Global Outlook published on 19 Mar 2021 (when USD/CNH was trading at 6.4980), we held the view that ‘the recovery in USD/CNH has plenty of room, both price and time-wise to extend further even though the major resistance at 6.6700 could be out of reach’."
“While our expectation for recovery was not wrong as USD/CNH rose to 6.5878, it was unable to hold on to its gains. The subsequent decline cracked 6.4400 in early May and the breach of the year-to-date low of 6.4009 on Tuesday (25 May) sent USD/CNH plummeting. Weekly MACD is beginning to turn negative and the risk within these couple of months is on the downside. However, until weekly MACD is deeper in negative territory, it is premature to expect the start of long-term downtrend.”
“In order to maintain the current downward momentum, USD/CNH should not move above the declining trend-line resistance (currently at 6.4800). On a shorter-term note, 6.4400 is already quite a strong level. On the downside, there is a minor support 6.3300 but the stronger support is at 6.3000.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
