Chinese Yuan Forecast: USD/CNH Teeters as AUD, NZD Bulls Wait
Hey there, market enthusiasts! Get ready for some exciting news in the forex world. The USD/CNH is wobbling on key support, and this could be a game-changer for the AUD/USD and NZD/USD. So, what's the buzz?
Key Points
- The USD/CNH is at critical support near 7.2130.
- AUD/USD and NZD/USD are experiencing bullish breaks.
- A breakdown of USD/CNH could boost the Aussie and Kiwi further.
Summary
AUD/USD and NZD/USD have successfully surged higher, leaving traders watching USD/CNH's every move. This currency pairing battles at its pivotal support as the forex market anticipates whether Bulls or Bears will claim victory.
Opinion & Analysis
Volatility is rampant due to trade war tensions. With USD/CNH caught in a falling wedge pattern, its next move is critical. A confirmed break below this wedge and 200DMA support line could suggest an extended rally for AUD/USD and NZD/USD. However, should support hold, we could see a different story.
“Despite a broad USD weakness, USD/CNH remains resilient. Watch for a break of 7.2130 or a rebound back above this to guide your next move.” – David Scutt
The USD/CNH Effect
Wondering about the correlation between AUD, NZD, and USD/CNH? It's simple! When USD/CNH declines, it typically boosts the Aussie and Kiwi. Inverse correlations have been strong, making USD/CNH movements a tactical play for traders invested in these pairs.
Want to keep ahead of the curve? Stay tuned and see if USD/CNH breaks the tension or holds the line. Either way, be prepared to adjust your strategy and ride the wave!
Don't just take our word for it—analyst David Scutt provides in-depth insights and guidance in our full report! Dive deeper now!