darcsherry
Short

USDCNH | WEEKLY PERSPECTIVE

FX:USDCNH   U.S. Dollar/Chinese Yuan
Recent upbeat data from China standing in contrast to the sluggish US statistics, the Bears once again are gradually regaining control as Sellers bombard 6.9900 level, down 0.15% on the last day of last week. With a meagre 45pips since my last publication on this pair (see link below for reference purposes), my Bearish bias still persists as price action has been caught within a consolidation phase with the anticipation that a Breakout from this range might be emphatic in the following week(s).

Tendency: Downtrend ( Bearish )
Structure: Channel ( Bearish Rectangle )
Observation: i. The fall of the USD since the beginning of July 2020 appears to continue even though we had a heavy consolidation pattern throughout the later part of last month.
ii. My Key level at 6.98000 is still a level on my radar in the coming week as I anticipate a significant Breakdown considering the selling pressure @ 7.00500.
iii. Kindly refer to my previous broadcast on this pair as the Harmonic expectation (AB = CD) is still in existence.
Trading plan: SELL confirmation with a minimum potential profit of 550 pips.
Risk/Reward: 1:3
Potential Duration: 1 to 5 days

NB: This speculation can be considered to make decisions on lower timeframes.

Watch this space for updates as price action is been monitored.



NirvanaForex
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.

Comments

Very detailed analysis! I have a similar view on this pair
Reply
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