- Analytics
- News and Tools
- Market News
- USD/CNH: Extra consolidation remains on the table – UOB
USD/CNH: Extra consolidation remains on the table – UOB
Further side-lined trade looks the name of the game for USD/CNH for the time being, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.
Key Quotes
24-hour view: Last Friday, USD dropped to a low of 7.2812 and then rebounded. Yesterday (Monday), we indicated that “the rebound has room to extend, but it is unlikely to break the strong resistance level at 7.3200.” The anticipated advance exceeded our expectations as USD broke above 7.3200 and reached 7.3229. Upward momentum has improved, albeit not much. USD could continue to advance, but today it is highly unlikely to reach the major resistance at 7.3600 (there is another resistance at 7.3400). On the downside, if USD breaks below 7.3070 (minor support is at 7.3150), it would indicate that USD is not advancing further.
Next 1-3 weeks: Our latest narrative was from last Friday (29 Sep, spot at 7.2975), wherein “if USD breaks clearly below 7.2800, it could trigger a rapid drop to 7.2600.” USD then dropped to 7.2812 and rebounded. Yesterday, USD broke above our ‘strong resistance’ level at 7.3200. The momentum buildup has faded. In other words, USD is not ready to break below 7.2800. From here, USD is likely to trade in a range, probably between 7.2800 and 7.3600.
© 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
