USD/CNH: Extra upside in store above 7.2000 – UOB

Pablo Piovano FXStreet

Further upside in USD/CNH should remain in the pipeline while above the 7.2000 level, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior Economist Alvin Liew.

Key Quotes

24-hour view: While we expected USD to advance yesterday, we held the view that it “is unlikely to break clearly above 7.1800.” However, USD broke above 7.1800 and rose to 7.1889. Upward momentum is building and today, USD could break above 7.2000 but it remains to be seen if it can maintain a foothold above this major resistance level. The next resistance at 7.2300 is unlikely to come into view. The upside risk is intact as long as USD stays above 7.1700 (minor support is at 7.1800).

Next 1-3 weeks: Last Friday (16 Jun, spot at 7.1380), we held the view that the recent USD strength had ended and we expected it to trade between 7.0900 and 7.1800 for the time being. We did not expect USD to rise above 7.1800 so quickly (NY high of 7.1889). While upward momentum is building again, USD must break and stay above 7.2000 before further sustained advance is likely. Looking ahead, the next resistance above 7.2000 is at 7.2300. The likelihood of USD breaking clearly above 7.2000 will remain intact as long as it stays above the ‘strong support’ level, currently at 7.1500.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.