Forex Story: US Dollar Holds Strength Against Chinese Yuan
Ming Lam May 20, 2020 12:52 AM
On a Daily Chart, USD/CNH remains on the upside after breaking above a Triangle Pattern...
Tensions between the U.S. and China remain heightened.
U.S. President Donald Trump has been reiterating his disappointment with China's response to the coronavirus crisis.
In a recent interview with Fox Business Network, Trump said he didn't want to speak to Chinese President Xi Jinping at the moment.
"There are many things we could do. We could do things. We could cut off the whole relationship," Trump also said.
His latest comments: "I feel very differently now about that deal (trade deal with China) than I did three months ago, (...) It just seems to mean less to me, (...) We'll see what happens."
Meanwhile, the U.S. dollar is holding up well against the Chinese yuan
On a Daily Chart, USD/CNH (CNH means Chinese Yuan in the offshore market) remains on the upside after breaking above a Triangle Pattern.
Source: GAIN Capital, TradingView
The pair keeps trading at elevated levels above the psychologically-significant level of 7.0000.
And technical indicators (20-day, 50-day moving averages, relative strength index) are still well directed as to maintain Short-Term Bullishness.
Trading at levels above the Key Support at 7.0670, the pair should expect Overhead Resistance at 7.1620 and 7.1950 on the upside.
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