USDCNH Blows Through Red Line of 6.83

USDCNH has taken out the 2008 USDCNY peg level. USDCNY holding below 6.80 and not following, and USDCNY would need to follow to signal a breakdown in the yuan. The PBoC will still be intervening, but above 6.83 there's going to be an uptick in the depreciation expectation. Technical traders in China and out will be looking for a breakdown. The pressure rises and the market will be looking for any opening to take yuan lower. USDCNY 7.00 is the next target. After that the next anchor price is 8, then quickly USDCNY 8.28, and beyond that it's uncharted territory.

No comments:

Post a Comment