US-China relations show signs of cooling
Technical Analysis Summary USD/CNH: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Neutral | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, USDCNH: D1 is in a triangle. It must exit it to the top before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if USDCNH: D1 rises above the last 2 up fractals: 6.8. This level can be used as an entry point. Initial risk cap is possible below the Parabolic signal, the lower Bollinger band and the last down fractal: 6.68. After opening a pending order, we move the stop-loss following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (6.68) without activating the order (6.8), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of -
The deterioration of US-China relations could weaken the yuan. Will USDCNH quotes continue to rise?
Currently U.S. House of Representatives Speaker Nancy Pelosi is visiting Taiwan. If this increases political tension in the region, the Chinese currency may weaken. The last time the Speaker of the US Parliament (the third person in the US government after the President and Vice President) visited Taiwan was in 1997. It should be emphasized that Nancy Pelosi's current visit is likely to be short-term and may end as early as August 3rd. If it passes quietly, it is unlikely that there will be a noticeable reaction from USDCNH. In addition to political events, the yuan may react to the publication of Caixin China Services PMI, which will be held on August 3. The forecast is negative. For the dollar, the highlight of the week will be the United States Nonfarm Payrolls for July, which will be released on August 5.