The USDCNH is coming into key resistance.
If you watch the weekly “Week Ahead” video that we post on YouTube, you may have recalled us discussing the USDCNH chart. Since the weekend, the USDCNH has rallied sharply and is now above the 78% retracement at 6.9238. A risk of a move to trend highs is increasing as China uses their currency to assist them in combating an increase in tariffs by the USA. If we do break to new trend highs, this could signal another leg in risk aversion in stocks and FX in the weeks ahead. RSI is overbought, which is a risk to the current move higher.
Blake Morrow
