Yuan Sees Its First Death Cross Since 2015 Devaluation: Chart
The currency’s 50-day moving average has now broken through its 200-day counterpart for the first time since its shocking currency devaluation three years ago.
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The bad news continued for China’s yuan Wednesday as it tumbled the most since January 2016, in the process triggering a bearish technical pattern known as a “death cross.” The currency’s 50-day moving average has now broken through its 200-day counterpart for the first time since its shocking currency devaluation three years ago. China can allow the yuan to weaken a bit further, but at some point it will step in with support, as too much weakness would be counterproductive, according to David Lebovitz, global strategist at JPMorgan Asset Management in New York.