Chart of the day: Dollar gains one step at a time
On Monday, as the Group of 20 country leaders’ summit concludes in the historic city of Hangzhou, with its beautiful lake, causeway and pagoda, we turn to the onshore yuan. Some welcome its moves over the past year, having depreciated from 6.20 per US dollar to 6.68 before top-shot politicians meet. Technical analysts would say the rally in the greenback is a steady progression of steps higher – not too big, not too rushed and not to heaven. Consolidation between 6.32 and 6.42 late last year led to the next step up. Same again between 6.46 and 6.60 during the first half of this year. The move has gained pace now, having reached 6.62 to 6.70 since July where a break above here targets 6.78.
Nicole Elliott is a technical analyst