USD/CNH: Further rangebound on the table – UOB
|According to FX Strategists at UOB Group, USD/CNH is predicted to keep the 6.4600-6.5050 range unchanged for the time being.
Key Quotes
24-hour view: “Yesterday, we highlighted that ‘downward momentum is showing tentative signs of waning and this coupled with oversold conditions suggests that USD is unlikely to weaken much further’. We expected USD to ‘consolidate and trade between 6.4630 and 6.4850’. Our view for consolidation was not wrong even though USD traded within a narrower range than expected (6.4656/6.4789). Momentum indicators are mostly neutral and further consolidation would not be surprising, likely between 6.4630 and 6.4830.”
Next 1-3 weeks: “We continue to hold the same view as from Tuesday (24 Aug, spot at 6.4790). As highlighted, the outlook is mixed and USD could trade between 6.4600 and 6.5050 for a period of time. Looking ahead, the downside risk appears to be greater but USD has to close below the major support at 6.4500 before a sustained decline can be expected.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.