ridethepig
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ridethepig | CNH Spot Commentary 2020.02.03

FX:USDCNH   U.S. Dollar/Chinese Yuan
An important update to the CNH chart after the latest coronavirus measurements and impact calculations. PBOC stepped in as expected to stop the bleeding and SHCOMP ending the day with a lucky -8%:


In the FX market, the impact will show over the coming sessions as demand for CNH increases with capital rushing to the doors. This is not a healthy technical looking picture, buyers were tracking the "Cup and Handle" formation earlier last year till we traded the rejection live in the diagram:


Although it takes a brave man to step against the current flows as they have been short-circuited via a temporary demand shock, I continue to look to ride the pig to the downside here and trade the leg towards the lows in the 6 handle via USD devaluation.

Good luck all those navigating around the coronavirus flows, we will keep the charts updated incase of any breakouts to the topside. If this is the case we will need to reassess the view as the 7.27xx technical target which I mentioned earlier would be back in play.

Thanks for keeping the support coming with likes, comments and etc!

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