Technical Analysis


Yuan threatens long-term low

USD/CNH today matched the September high at precisely 7.1965.

Given the dynamic with China re-opening, you would expect the yuan to be stronger but it’s not. The latest leg is no-doubt related to Hong Kong and potential sanctions and that’s partly natural but it could also be China sending a warning signal to the US.

Technical analysis on a chart like this is a bit of a canard because it’s manipulated. It’s not like there’s going to be some kind of runaway breakout like we saw in USD/CAD yesterday. There’s a daily trading range and it’s not going to suddenly break.

At the same time, allowing it to rise above 7.20 would be a powerful signal from Beijing.

No one has forgotten the August yuan freakout from 2015.

See here for global coronavirus case data



Source link

Articles You May Like

Secret Forex Trading System | Forex Scalping Strategy Indicator | Never Loss in Trading
FOREX $4,290 IN 1 DAY + $12,000 WITHDRAWAL | JEREMY CASH | FOREX TRADING
USDJPY continues its fall lower. Range for the day is larger than the range from last week’s trading.
1 week Profit 84% Only | Forex Copy Trading System Bangla | Forex Trading Strategy |
Stocks slip as the Fed chair presser continues

Leave a Reply

Your email address will not be published. Required fields are marked *