Let’s see how the Trump/Junker talk goes but the most interesting FX candle of the day is the offshore Yuan. We have seen the Yuan trade at these levels for a few days and we are currently seeing it put in the biggest reversal candle since the parabolic move started in mid-June.
The short-term trend has been very steep. Don’t be surprised if this steep trend is broken and the Yuan trades at 6.60 ish sooner than later. Watch that trend line carefully!
Source: charts by Bloomberg