- Seasonally CNH is strong in DEC + JAN
- Seasonally USD is weak in DEC
- Technically a Wyckoff distribution seems to unfold
- A last upthrust / stophunt could happen but not likely
- Looking for a 1 deviation drop = sellside liquidity-zone
USD CNH - Forex.com
Short / Sell Trade.
Entry Level should be below the 50.0% FIB / Daily Support zone with Bearish candle @ 7.19050
TP - 1 : Above the FIB level 78.6% / Daily Support zone @ 7.10470
TP - 2 : Above the 4 Hour support level / Weekly Support Zone @ 7.06960
TP - 3 : Above the FIB level 100.0% / Daily support level @...
As the Chinese economy was slowing even before the lockdowns, the strict lockdowns put a lot more pressure on the CNH/CNY. This created a huge divergence in the policies of the Fed and PBoC, as one was hiking and the other was cutting. For quite some time the USD was going up against most currencies, except the CNY... until one day the market fully reversed and...
This black barchart is the M2 of the largest central banks of the world (USA, China, Europe, Japan.), converted into USD (in Trillions), which is the world reserve currency.
So this is a rough expression for global liquidity, which can go and buy assets like stocks or bonds.
Any strong decrease in this Liquidity should sooner or later lead to a run for US Dollars...
A few months ago, I proposed USDCNH/USDCNY consolidating for a bit and then going higher, as such strong moves usually follow through. The Chinese economy looks extremely weak for multiple reasons, and I see no way that the CNH/CNY won't lose much of its value relative to the dollar. Technically it is ready for another strong move higher, and the fact that Pelosi...
The USD in the last session, by the macro news, has a loose value against the EUR, this will affect all the pairs correlated, especially all the ones with the first denominator starting with USD. Today I want to talk about USD/CNH that comes from a long Bullish rally where in the last sessions it's inside an accumulation rectangle.
We are looking to buy again here...
A little while ago the PBOC lost control of their currency and we saw the US dollar rising exponentially.
In the latest trade report from China Exports from China edged 0.3% lower yoy to USD 298.37 billion in October 2022, missing the market consensus of a 4.3% growth. This was the first decline in shipments since May 2020, amid poor overseas demand as cost...
The U.S. Dollar vs. the offshore Chinese Renminbi. The Renminbi (CNH) is the designation used when the currency is traded offshore. It often referred as the Yuan and uses the letters CNY when traded inside China. China is the world’s second largest economy behind the U.S. but is the world’s largest exporter.