USD/CNH is likely to edge higher – UOB Group
Source Fxstreet
US Dollar (USD) is likely to edge higher, potentially breaking above 7.1550. In the longer run, the price action suggests that USD could rise toward 7.1650, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/CNH can potentially breake above 7.1550
24-HOUR VIEW: "We expected USD to 'trade in a range between 7.1340 and 7.1480' yesterday. USD then traded in a range of 7.1362/7.1490, closing at 7.1463 (+0.07%). There has been a tentative buildup in momentum and today, USD is likely to edge higher, potentially breaking above 7.1550. The next resistance at 7.1650 is unlikely to come under threat. To maintain the buildup in momentum, USD must not break below 7.1380, with minor support at 7.1420."
1-3 WEEKS VIEW: "In our most recent narrative was from two days ago (06 Oct, spot at 7.1400), we highlighted that 'upward momentum is starting to build, but for a continued advance, USD must first break and hold above 7.1480.' Yesterday, USD rose to a high of 7.1490 before closing at 7.1463. While we would have preferred a more decisive close above 7.1480, the price action suggests that USD could rise toward 7.1650. On the downside, a breach of 7.1330 would indicate that the buildup in momentum has eased."
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
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