A bullish pennant is forming. China environmental reform will take a toll on growth and generate inflation. PBoC will probably not be very inclined to tighten policy as this might hurt economic expansion even more and will tolerate higher level of inflation, thus delivering lower real rates that will in the end help CNY depreciate.
Trade active:
Long @ 6.61
Target @ 6.76
Stop @ 6.59
Target @ 6.76
Stop @ 6.59
Trade closed: stop reached:
Stop reached @ 6.59