USDCNH Analysis: US continues to impose sanctions on Chinese companies

September 30, 2020

By IFCMarkets.com

US continues to impose sanctions on Chinese companies

An upward movement means the correction and weakening of the Chinese yuan against the US dollar. Note that in the 2nd quarter of 2020, the yuan appreciated against the US dollar by almost 4%. This was its highest quarterly growth since the beginning of 2008. Before SMIC, the US had already imposed sanctions on China’s largest mobile phone and internet equipment manufacturer, Huawei, as well as about 50 other smaller companies. This could negatively affect on the Chinese economy amid its trade war with the US. Last week, US President Donald Trump said in a campaign speech in Pennsylvania that he would end the American economy’s dependence on Chinese goods if he wins the upcoming November 3rd elections. China’s NBS Manufacturing PMI and Caixin Manufacturing PMI for September are due Wednesday morning in China. They could affect the yuan’s exchange rate ahead of the long weeke nd of October 1-8 (Mid-Autumn Festival this year coincided with China’s Education Day).

Indicator VALUE Signal
RSI Buy
MACD Buy
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

 

Summary of technical analysis

Order Buy
Buy stop Above 6.85
Stop loss Below 6.74

Market Analysis provided by IFCMarkets.com

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