Hello traders,
This week I want to share with you a trading plan on a currency pair that offers a lot of potential in my opinion. The clash between two of the largest economies in the world - USA and China is transferred to the financial market and currency dominance. Currently the USD is weakening against the CNH and I believe things will remain like that in the near future.
You can check the full technical analysis in the video with the trading plan on Youtube.
Below you can find information about target levels, sell zones and an economic overview for the week.
Sell Zone 1: 6.3925 to 6.3480
Sell Zone 2: 6.3445 to 6.2815
Our main target is at around 6.3480.
The long term target is at a price level of 6.2815.
Now for an economic overview for this week:
Tuesday - June 5
14:00 GMT (16:00 Bulgarian time)
USD ISM Non-Manufacturing/Services Composite
Expected reading is 57.6, which is a little bit higher than the previous 56.8. I believe that this is already priced in on the market and if there are no drastic changes the price should remain stable.
Saturday - June 9
01:30 GMT(03:30 Bulgarian time)
CNY/CNH/ Consumer Price Index
Expected reading is 1.9% and the previous was 1.8%. This is expected to give a boost to the currency, but keep in mind that this report comes out on Saturday, so it will be priced in on the market either on Friday or Monday. Probably on Friday, which would most likely mean a drop in the USD/CNH currency pair, so if that happens I would suggest you to close part of your positions before the weekend as Monday might come with a correctional move.
That would be all for this week!
I wish you a profitable week in trading! :)
This week I want to share with you a trading plan on a currency pair that offers a lot of potential in my opinion. The clash between two of the largest economies in the world - USA and China is transferred to the financial market and currency dominance. Currently the USD is weakening against the CNH and I believe things will remain like that in the near future.
You can check the full technical analysis in the video with the trading plan on Youtube.
Below you can find information about target levels, sell zones and an economic overview for the week.
Sell Zone 1: 6.3925 to 6.3480
Sell Zone 2: 6.3445 to 6.2815
Our main target is at around 6.3480.
The long term target is at a price level of 6.2815.
Now for an economic overview for this week:
Tuesday - June 5
14:00 GMT (16:00 Bulgarian time)
USD ISM Non-Manufacturing/Services Composite
Expected reading is 57.6, which is a little bit higher than the previous 56.8. I believe that this is already priced in on the market and if there are no drastic changes the price should remain stable.
Saturday - June 9
01:30 GMT(03:30 Bulgarian time)
CNY/CNH/ Consumer Price Index
Expected reading is 1.9% and the previous was 1.8%. This is expected to give a boost to the currency, but keep in mind that this report comes out on Saturday, so it will be priced in on the market either on Friday or Monday. Probably on Friday, which would most likely mean a drop in the USD/CNH currency pair, so if that happens I would suggest you to close part of your positions before the weekend as Monday might come with a correctional move.
That would be all for this week!
I wish you a profitable week in trading! :)
