USD/CNH: Risks are now tilted to the upside – UOB

Pablo Piovano FXStreet

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group argue that USD/CNH could have embarked on a potential move to 7.3500.

Key Quotes

24-hour view: We expected USD to trade sideways yesterday. However, USD took off and soared to a high of 7.3120. Unsurprisingly, upward momentum has increased significantly. USD is likely to rise further even though it is unlikely to reach 7.3500 today (there is another resistance at 7.3300). On the downside, 7.2900 is a solid support (minor support is at 7.3000).

Next 1-3 weeks: On Monday (04 Sep, spot at 7.2670), we indicated that “there is a slight increase in downside risk.” We also indicated that USD “must break and stay below 7.2390 before a sustained decline is likely.” However, USD did not break 7.2390. Instead, it broke above our ‘strong resistance’ level of 7.3000 and soared to 7.3120. The price action has shifted the risk to the upside, likely towards 7.3500. The upside risk is intact as long as USD stays above 7.2800.

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 flat lines around 1.1900; looks to US NFP report for fresh directional impetus

The EUR/USD pair is seen oscillating in a narrow trading band around the 1.1900 mark during the Asian session on Wednesday as traders opt to wait for the release of US monthly employment details before placing fresh directional bets.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold awaits US Nonfarm Payrolls data for a sustained upside

Gold remains capped below $5,100 early Wednesday, gathering pace for the US labor data. The US Dollar licks its wounds amid persistent Japanese Yen strength and potential downside risks to the US jobs report. Gold holds above $5,000 amid bullish daily RSI, with eyes on 61.8% Fibo resistance at $5,141.

Ethereum: Whales buy the dip amid rising short bets

Following one of Ethereum's largest weekly drawdowns, whales are slowly returning to action alongside a drop in retail selling pressure. After slightly selling into the decline at the start of the month, whales or wallets with a balance of 10K-100K ETH began buying the dip last Wednesday as prices crashed further.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.