Fundamentals:
Demand for CNH may further decrease due to the outbreak. Easing measures may be undertaken by PBOC to further depress CNH.
Technicals:
D1 bullish gartley, support being met
Demand for CNH may further decrease due to the outbreak. Easing measures may be undertaken by PBOC to further depress CNH.
Technicals:
D1 bullish gartley, support being met
Trade closed: target reached
- We are likely to see a cut which in theory will cause USD depreciation, ceteris paribus
- This may drive USDCNH downwards, and hence cause this trade to fail
- For this trade to succeed, we will hope for PBOC to implement policies to depress the value to CNH, namely quantitative easing
- It is apt to highlight the importance of risk management. Failure is part and parcel of currency trading. Any trade with the best set-up may fail due to unexpected news releases. Risk too much in one trade, and your account may not be able to survive losses in the short run to see profit in the long run.
Personally, I never risk more than 5% of my account per trade, but I recommend risking even less per trade (ie. <3%).