Inventory market rally has legs suggests BofA forex chart
language yuan on CNBC’s “”Futures Now” to point out the power of “danger on” (or high-yielding, risk-sensitive) property.
His huge takeaway: The broader market rally has room to run as a result of the greenback/yuan forex pair is in a downtrend.
“We now have a technical high within the U.S. greenback versus the Chinese language yuan. Now, that is a vital technical high to have as a result of it means the greenback is weakening,” he mentioned Thursday. “The decrease that the alternate price between the U.S. greenback and the Chinese language Yuan comes down, the extra it’s a signal, per say, that the commerce agreements between the U.S. and China are going nicely.”
The greenback versus the yuan has been buying and selling at its weakest stage since July.
“We now have a pleasant left shoulder, head and proper shoulder that fashioned. That neckline was damaged simply the opposite day proper in right here. We’re now legging down to not one, however to a second new low,” mentioned Ciana.