• USD/CNH: Risk now shifted to the downside – UOB

Market news

7 May 2021

USD/CNH: Risk now shifted to the downside – UOB

FXStreet reports that FX Strategists at UOB Group said that USD/CNH now risks further pullbacks, although a strong support emerges at 6.4400. 

Next 1-3 weeks: “Two days ago, we highlighted that while the recent negative phase in USD has ended, ‘it is too soon to expect a recovery’. We held the view that USD could trade between 6.4650 and 6.5020. We did not anticipate the rapid manner by which USD plummeted to 6.4635 yesterday. The risk has shifted to the downside again but in view of the nascent build-up in downward momentum, any weakness may find it difficult to break 6.4400. The downside risk is deemed intact as long as USD does not move above 6.4820 (‘strong resistance’ level).”

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