=> What are we tracking here? => This is a very complex environment with major risk off flows from large funds in play last week. => Bears are refusing to capitulate and give the highs defending with everything they have meaning we can use the highs at 6.9586 as a line in the sand for triggering further risk-off flows, especially in the broader EM space. => On the...
=> Here it becomes perfectly acceptable to use CNH as a barometer across the EM currencies... the correction we are eyeballing across the EM spectrum is largely being dictated via China and tariffs. => Linkages between our most recent ideas from USDARS, USDTRY, USDINR and USDRUB cover the broader EM moves as the case for a bearish correction becomes strong. As...
Technical Analysis i) Looks like a Cup and Handle formation for USD/CNY on the weekly chart. Looking to short play the Handle, looking for entries between 6.62 - 6.64 down to 6.48 level. ii) Our most likely scenario (1), will have a pullback from the Handle down to the 6.48 level from their should look for some long positions up to 6.8 level. *ii) However, as...
After 4 weeks, and awesome run. I am still leaning toward BEAR. It shall go below 6.80 level again and even further. DO not LONG just yet.. Trade Safe, s0nic