Free Trial

***Risk returned yesterday following.....>

CHINA YUAN
CHINA YUAN: ***Risk returned yesterday following the Washington trade delay
headlines. We previously highlighted in an MNI Analysis email on Tuesday that
USDCNY had formed a rising wedge, which is normally a bearish reversal pattern
(USDCNY Rising Wedge - Aug 12 1200BST). We noted the MACD & RSI indicators were
stretched and an exhaustion gap on the weekly charts suggested the potential of
a short-term correction lower. It's also worth noting of yesterday's shooting
star candle pattern which could further cement the move.
- USDCNY slipped nearly 6 big figures to Cny7.0165 overnight and holds toward
the base of its daily range. A break back under Cny7.00 opens a move towards
Cny6.9525 which represents the 50% retracement level of the June - August rally.
Below here opens the 50-dma & trendline support drawn off the Apr 18 low at
Cny6.9133/6.9070.   

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.