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USD/CNH still faces firm contention around 6.8350 – UOB

The resumption of the downside in USD/CNH should meet initial support around 6.8350 ahead of 6.8000, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We expected further USD weakness yesterday but we were of the view that deeply oversold conditions could ‘limit’ any further losses to 6.8350. USD did not weaken further as it rebounded from a low of 6.8510. USD appears to have moved into a consolidation phase and it is likely to trade between 6.8650 and 6.9050 today.”

Next 1-3 weeks: “We highlighted yesterday (14 Mar, spot at 6.8600) that the impulsive drop in USD is likely to continue. There is no change in our view. Only a breach of 6.9300 (no change in ‘strong resistance’ level) would invalidate our view. Looking ahead, support levels are at 6.8350, followed by 6.8000.”

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S&P 500 Index: Breach of key supports warns a test of 3730 – Credit Suisse

S&P 500 has now seen a break below key support at 3940/27 to warn of a more important turn lower. Weekly close below 3730 to reexpose 3505/3492 “S&P 5
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