USD/CNH: USD must not break below 7.0500 – UOB Group
|The US Dollar (USD) could strengthen further, but it remains to be seen if it can maintain the rapid pace of advance, UOB Group FX analysts Quek Ser Leang and Peter Chia note.
The level to monitor is 7.1200
24-HOUR VIEW: “Last Friday, we expected USD to edge higher, but we were of the view that ‘any advance is unlikely to reach 7.0710.’ Instead of edging higher, USD surged, reaching a high of 7.1036. The sharp and swift rally appears to be overdone, and USD is unlikely to rise much further. Today, USD is more likely to trade in a range, probably between 7.0700 and 7.1050.”
1-3 WEEKS VIEW: “The level to monitor is 7.1200. Last Thursday (03 Oct, spot at 7.0380), we indicated that ‘the recent USD weakness has stabilised.’ We also indicated that ‘the current price movements are likely part of a range trading phase, probably between 6.9900 and 7.0800.’ On Friday, USD surged above 7.0800 and reached 7.1036. USD closed on a strong note, up by 0.69% (7.0991), its second biggest 1-day gain this year. While further USD strength is not ruled out, it remains to be seen if it can maintain the rapid pace of advance. The level to monitor is 7.1200. In order to maintain the rapid buildup of momentum, USD must not break below 7.0500.”
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.