- USD/CNH risks ending November on a negative note. That would be the first negative monthly close after a gap of seven months.
- The monthly chart is showing early signs of bearish reversal.
The USD/CNH (yuan’s offshore exchange rate) looks set to post its first monthly loss since March 2018. At press time, the pair is trading at 6.9399 – down 0.48 percent from the month’s opening rate of 6.9739.
Notably, the pair has created a hanging man on the monthly chart – a candlestick pattern which indicates the waning influence of the bulls.
The hanging man pattern could be considered a sign of impending bearish reversal, which would be confirmed if and when the pair finds acceptance below 6.8521 (low of hanging man candlestick).
A negative follow-through, however, would remain elusive if weekend’s Trump-Xi meeting fails to produce at the very least a pause in the trade dispute.
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