Is the Chinese Yuan Ready to Move Forward?
Good day!
It is a well-known fact that there is now a trade war going on between the USA and China. Now it’s become clear that China has decided to diversify and start a currency war, depreciating national currency and breaking the 7.0000 key level.
In the daily chart, the currency pair USDCNH is heading up after remaining still for a while and then pulling back from the 6.6875 level. For now, the offshore yuan has reached the upper boundary of the uptrend and is about to form a pattern resembling a pennant where the handle is also present. Should this pennant pre-empt the asset jumping, the currency pair may then test the 7.3000. levels.
Should the pennant get broken down, the asset could potentially pull back from the trend and fill the formed gap. So, the yuan might even target the 7.0000 level:
The Canadian dollar got back to the broken 1.3238 level and formed a bullish engulfing pattern. So far, we assume that the asset will pull back to the middle point of the engulfing pattern and then the currency pair could potentially jump:
The British pound rate approached the downtrend, trying to close the trading day with a bearish engulfing pattern. We could assume that this asset may drop:
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