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Opinion

Chart of the day: Offshore yuan back in focus

Topic | Chart Book

Nicole Elliott

Published:

Updated:

As Chinese holidaymakers trickle back to town and to work, it is a good time to look back at January’s price action. The yuan has been at centre stage and, on record volume, the offshore unit has retreated from its weakest ever against the US dollar at 6.987, forming a monthly bearish engulfing column in the process. This follows weekly ones in December as well as the one last month that we warned about. It is a good example of how technical analysis and market moves work in fractals, similar patterns forming in each higher time frame. As previously stated, we have found an interim high and, over the next few months, sideways consolidation is highly likely, probably above 6.70.

Nicole Elliott is a technical analyst

Conversations
Nicole Elliott
After graduating from the London School of Economics, Nicole started her banking career in London in 1982. Whether in trading, sales or an advisory capacity technical analysis has been the bedrock of her methodology. She has a wealth of markets experience including foreign exchange, money market, fixed income, stock indices, derivatives and commodities. She has spoken extensively on the subject, at conferences, to the press and on television, covering both market views and also teaching Technical Analysis. She is a published author and a recognized expert on Ichimoku Cloud charts.
Chart Book Yuan

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As Chinese holidaymakers trickle back to town and to work, it is a good time to look back at January’s price action. The yuan has been at centre stage and, on record volume, the offshore unit has retreated from its weakest ever against the US dollar at 6.987, forming a monthly bearish engulfing column in the process. This follows weekly ones in December as well as the one last month that we warned about. It is a good example of how technical analysis and market moves work in fractals, similar patterns forming in each higher time frame. As previously stated, we have found an interim high and, over the next few months, sideways consolidation is highly likely, probably above 6.70.

Nicole Elliott is a technical analyst

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Conversations
Nicole Elliott
After graduating from the London School of Economics, Nicole started her banking career in London in 1982. Whether in trading, sales or an advisory capacity technical analysis has been the bedrock of her methodology. She has a wealth of markets experience including foreign exchange, money market, fixed income, stock indices, derivatives and commodities. She has spoken extensively on the subject, at conferences, to the press and on television, covering both market views and also teaching Technical Analysis. She is a published author and a recognized expert on Ichimoku Cloud charts.
Chart Book Yuan
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