darcsherry

USDCNH | WEEKLY FORECAST

Short
FX:USDCNH   U.S. Dollar/Chinese Yuan
The Yuan has been on the rise since the beginning of June 2020 and it does not appear that there will be a "slow-down" in the following week as the Greenback continues to depreciate.


Tendency: Downtrend ( Bearish )
Structure: Breakdown | Descending Triangle | Support & Resistance
Observation: i. A structure depicted by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows confirms our Descending Triangle .
ii. This pattern clearly explains that the Demand for the USD is weakening;
iii . As we anticipate price to break below our lower support @ 7.05000 (a psychological level) indicating downside momentum will become stronger in the following week(s).
iii . In as much that we shall be wary of false Breakdowns at the lower support, we shall eye a further Breakdown of Daily chart Trendline with engulfing candles as comfort .
iv. Please note that as the price keeps putting pressure on the 1st Key level throughout last week, a Breakdown of this level might be a zone to initiate sell order for quick gains.
Trading plan: SELL confirmation with a minimum potential profit of 450 pips.
Risk/Reward: 1:2.5
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.

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 NFTI takes 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.
NFT&I does 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.