USD/CNH drops to 50-HMA on Trump's comments on trade

Trump's positive comments on trade seem to have put a bid under the Chinese yuan.
USD/CNH (offshore yuan exchange rate) is currently trading near the 50-hour moving average (MA) support of 6.7888, having clocked a high of 6.8085 earlier today.

Omkar Godbole FXStreet Contributor

US President Trump's positive comments on trade are boding well for the Chinese currency.

The USD/CNH pair (offshore yuan exchange rate) has fallen back to the 50-hour MA support of 6.7888 from the highs above 6.8080 seen earlier today.

Trump was out on the wires a few minutes ago, stating that his administration is seeking great deals on trade and does not want China to have a hard time. His comments come a day after the US and Chinese officials expressed hopes that the new round of negotiations would help the two sides ease out trade tensions.

Looking ahead, the currency pair may take out the 50-HMA support on the US-China trade optimism. The technical outlook, however, would remain bullish as long as the pair is trading above 6.7676 (low of yesterday's bullish hammer candle).

Technical Levels

1. R3 6.8509
2. R2 6.8271
3. R1 6.8125
PP 6.7887
1. S1 6.7741
2. S2 6.7503
3. S3 6.7357

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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