USD/CNH: To trade in a 7.2300/7.2650 range – UOB Group

FXStreet Insights Team FXStreet

The US Dollar (USD) is expected to trade in a 7.2300/7.2650 range. USD must break and remain below the 7.2037 low before further weakness can be expected, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

USD must break below 7.2037 to continue downwards

24-HOUR VIEW: “While we expected USD to break below 7.2600 yesterday, we were of the view that 7.2500 could be out of reach. The subsequent spike in volatility was surprising, as USD nose-dived to 7.2037 and then rebounded to close at 7.2405 (-0.30%). The rebound in oversold conditions suggest USD is unlikely to weaken further. Today, we expect USD to trade in a 7.2300/7.2650 range.”

1-3 WEEKS VIEW: “We turned negative in USD yesterday (25 Jul, spot at 7.2655), indicating that it ‘is likely to trade with a downward bias towards 7.2500, with a lower probability of it reaching 7.2400.’ We did not anticipate the subsequent wild price action, as USD plunged to 7.2037 and then snapped back up. While further USD weakness is not ruled out, it must break and remain below the 7.2037 low before further decline can be expected. The likelihood of USD breaking clearly below the low will be intact provided that 7.2800 (‘strong resistance’ was at 7.2900 yesterday) is not breached.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.