- Analytics
- News and Tools
- Market News
- USD/CNH: Prospects for extra gains remain in place – UOB
USD/CNH: Prospects for extra gains remain in place – UOB
UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang favour the idea of further consolidation for USD/CNH in the near term.
Key Quotes
24-hour view: We highlighted yesterday that “The risk for USD still appears to be on the upside even though lackluster momentum continues to suggest 7.1800 is unlikely to come into view”. Our view was not wrong as while USD strengthened, it did not break 7.1800 (high has been 7.1784). Upward momentum has increased and today, a break of 7.1800 will not be surprising. However, the next major resistance at 7.2000 could be out of reach. Support is at 7.1630, followed by 7.1500.
Next 1-3 weeks: We have expected a higher USD since last Thursday (08 Jun) when it was trading at 7.1500. In our most recent narrative from two days ago (12 Jun, spot at 7.1520), we highlighted that “while upward momentum has been rejuvenated, it remains to be seen if USD has enough momentum to rise to 7.1800 and 7.2000”. Yesterday (13 Jun), USD soared to a high of 7.1784. In view of the further increase in momentum, the chance of USD breaking above 7.2000 has improved. Looking ahead, the next level to watch above 7.2000 is 7.2200. On the downside, a break of 7.1330 (‘strong support’ level previously at 7.1220) would indicate that USD is not strengthening further.
© 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
