This is very likely a one-way move (up) here - as all previous examples would illustrate.
Most importantly, this is one of (if not "The") most lopsided FX (and debt, and credit, etc.) positioning currently on the entire Globe! (Everyone and everything is currently Net Short the Dollar vs. the Yuan!)
Ergo, as this move gets going (up) it is only likely to gain...
This pair is about to take a multi-year dive (not, yet!) speaking volumes of a developing global crisis (risk-off).
Here is the Daily for more precise timing.
As we all fret on the verge of what's going to happen next with BTC, the Fed, the SEC's decision on Bitwise's ETF, the US-China trade war, etc... It's good to also not forget how influential China has been in the news the past year. And not to mention, how influential China has been to BTC the past decade.
If we look at the charts of both BTC and the RMB, there...
Not supposed to raly like this. USD not that strong. On this chart it is at a premium compared to normal.
Also, USDCNH has been following USDTRY with a delay:
USDSEK went down too even. Time for USDCNH.
USDCNH looks very bearish in my opinion. We had a serious sell-off at the 6.986 handle, and I think we are due bearish continuation. This is a daily chart, so this is a longterm trade.
For those that follow bitcoin, it would be very interesting if we saw YUAN strength and BITCOIN weakness at the same time. :)
