With a Group of 20 limit starting in Hangzhou subsequent Sunday, it is time to expel a peek opposite a South China Sea and notice a pointed moves in a offshore yuan’s sell rate. Perhaps helped along by a People’s Bank of China, that increasing income marketplace liquidity on Friday with repurchase agreements, a offshore yuan reached this month’s tip indicate and matched January’s tip close. The turn of 6.685 per US dollar coincides with a Fibonacci 78.6 per cent retracement resistance, so technical analysts will not be astounded by a onslaught here. Note also that 6.69 was a tip indicate in Oct 2010. We continue to aim a exam of a tip of a triangle converging and an contingent mangle to new highs – yet only not this week.
Nicole Elliott is a technical analyst
Article source: http://www.scmp.com/business/markets/article/2010327/chart-day-further-weakness-seen-offshore-yuan