Current strength of Chinese yuan vs US dollar could soon lose momentum
USDCNH shows a classic two-leg move with a large consolidation in between.
The first leg unfolded rapidly in 2022, with the pair rocketing more than 1 yuan — from 6.30 to 7.37 — marking a huge depreciation.
That move was followed by a large, three-year consolidation, which now looks close to completing.
If leg two mirrors the distance of leg one, USDCNH could shoot past 8.00 and potentially reach 8.195.
The confirmation trigger is set at 7.224 — the peak of the most recent minor consolidation.
What could trigger such a massive yuan drop?
What’s your take? Drop it in the comments below.
USDCNH shows a classic two-leg move with a large consolidation in between.
The first leg unfolded rapidly in 2022, with the pair rocketing more than 1 yuan — from 6.30 to 7.37 — marking a huge depreciation.
That move was followed by a large, three-year consolidation, which now looks close to completing.
If leg two mirrors the distance of leg one, USDCNH could shoot past 8.00 and potentially reach 8.195.
The confirmation trigger is set at 7.224 — the peak of the most recent minor consolidation.
What could trigger such a massive yuan drop?
- -New tariffs
- -A major clash with the US
- -A sharp economic downturn
What’s your take? Drop it in the comments below.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.