legendarytrades
Long

USD/CNY trend reversal in the making?

FX_IDC:USDCNY   U.S. Dollar / Yuan Renminbi
With China’s Economic slowdown, and stronger U.S. Dollar, another potential long-term trend reversal may be on its way. But enough with the fundamentals. I prefer to stick to the charts and price action.

So what are the reasons for this trend reversal assumption u might ask?
The first thing that I look at on a chart is the 200 MA, which recently, the price broke out of it and spiked to the upside on China’s weak fundamentals. The interesting part is that it didn’t retraced back down. However, price could certainly come back down to test the 6.27 support. Also, price made a series of higher lows since its bottom. Nevertheless, we need a clear break and close above the 6.4 level to start going long on this pair, which of course, it automatically confirms a trend reversal.
1st Target: 6.6
2nd Target: 6.8
3rd Target: 7.0

The only downside of this pair is that it’s very thinly traded (low volume ). This trade could easily take a year or more to profit from it. This is the ideal representation of a “Long Term Trade”. So if patience is not one of your virtues, I don’t recommend it to you.
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