Yuan USDCNH - Wave 3 of 3 - Motive Wave

Since the start of the trade war between the US and China, the Chin. Yuan has already depreciated by 8% against the US dollar. This will make Chinese products cheaper and thus cushion the US tariffs. At the same time, all US products will be 8% more expensive, plus tariffs.
At the same time, US dollar-based loans are becoming more expensive and are likely to worsening the financial situation of a number of Chinese companies and thus lead to market consolidation.

As you can see in the timetable, the pattern is Impulsive and the yuan is inside of the (3) circled 3. The RSI is already in the overvalued area so I expect shortly that wave (3) end and a subsequent correction wave (4) start.

Best Regards

Stefan Bode

P.S. Do not forget to agree.

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