USD/CNH Forecast Today 14/10: Volatility Ahead (Video)
Date
10/14/2024 2:39:02 PM
(MENAFN- Daily Forex) The US dollar has initially tried to rally a bit during the course of the trading session on Friday as we continue to see a lot of noisy behavior in this market being said though, the market is likely to continue to see a lot of volatility and it is probably worth noting that the moving average just above the 50 day EMA is going to cause quite a bit of resistance that we have the 7.1250 level that I think comes into the picture as a bit of a ceiling as well I don\u0026rsquo;t necessarily know that it would be impossible to break through, it obviously would have a little bit of \u0026ldquo;market memory\u0026rdquo; attached to it. Furthermore, you also have to see what the Chinese authorities would have to say. Top Forex Brokers 1 Get Started 74% of retail CFD accounts lose money Read Review BrokerGeoLists({ type: \u0027MobileTopBrokers\u0027, id: \u0027mobile-top-5\u0027, size: 5, getStartedText: \u0060Get Started\u0060, readReviewText: \u0060Read Review\u0060, Logo: \u0027broker_carrousel_i\u0027, Button: \u0027broker_carrousel_n\u0027, });On the Break Higher\u0026hellip;If the US dollar were to break above there, we would probably have a major risk off type of event going on as this pair tends to rise with concerns about the global economy and fall with liquidity measures and more of a risk on attitude. If we fall from here, the market could very well drop down to the 7.05 level, possibly even down to the 7.0 level.I do expect to see a lot of support in that area, so it\u0026#39;ll be interesting to see how this plays out, because clearly the People\u0026#39;s Bank of China does not want to see the Chinese Yuan strengthen too much. As a general rule, they like the idea of staying above the seven level in this currency pair, so that\u0026#39;ll be interesting to see. The technical analysis is most certainly negative in this pair at the moment, so I would anticipate that selling pressure probably comes into the picture sooner rather than later. This doesn\u0026rsquo;t necessarily mean that the US dollar gets eviscerated everywhere, because remember, the Chinese yuan is a strange and unique animal in and of itself.
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