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RBC Recommend Short USD/TWD

TWD

RBC note that “USD/TWD has been manifesting daily and weekly RSI divergence patterns in recent months and is pulling back from technical resistance layered around TWD29.80. The consolidation in USD/CNY in recent weeks has lent support to TWD. Net capital outflows from the local equity market continue to bedevil TWD, but the pace has lessened from what was seen in the first quarter. This is an opportune level to go short the pair against upside resistance.”

  • As such, they recommended going short USD/TWD 1-mth NDF at TWD29.47, targeting an equivalent spot move to TWD29.10, with a stop located at a daily close above TWD29.90 in spot terms.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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