Dollar continues recovery against the Chinese YuanThe US dollar has rallied a bit during the trading session on Friday, as we continue to see the US dollar pick up steam against the Chinese Yuan. A lot of this is going to come down to the US/China trade deal, and although we have had a significant pullback as of late, you can see that the market has bounce from the 200 day EMA. We are currently testing the 50 day EMA, which of course is a moving average that when tested should show some type of resiliency. We ended up forming a shooting star on Thursday, but it looks as if the market is going to try to break above there, which of course would be a very bullish sign.
If we continue to see a lot of the Dragon on the US/China trade deal, it’s possible that this market will continue to go higher. What’s noteworthy at the moment is that the market is now comfortable around the 7.00 level, so ultimately it looks as if the market will try to find some type of support underneath. At this point, the market should then go looking towards the 7.16 level again, as it was the most recent high. Ultimately, the market continues to see a lot of back and forth in this general vicinity, but I recognize that the uptrend is longer-term, so therefore should not be traded against. The pullback has been exactly what this uptrend needed, and now it’s only a matter of time of picking up a bit of momentum in order to go further. Expect erratic and choppy behavior, but that’s nothing new in this pair. You have to look at the longer-term attitude in order to gauge as to where you should be trading this market and in what direction. It remains bullish, despite the recent pullback.
