Price broke up this triangle📐 and I think there is chance for run to 6.92 and even higher. Setting BUY LIMIT order to previous range high to catch🎣 the pullback. Resistances along the way
ENTRY : local high @ 6.735
STOPLOSS (SL) : local low @ 6.668
TARGET (TP) : height of the triangle projected from midpoint of the local range (BUY LIMIT - STOPLOSS) @ 6.92
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Following a few months of consolidation, the US Dollar seems to be making some upside progress against the Chinese Yuan.
Fundamentally speaking, a hawkish Federal Reserve and dovish People's Bank of China offer upside potential for USD/CNH. This also follows measures from China's government (about 1 trillion Yuan) to bolster the economy.
In response, USD/CNH is...
USDCNH Jan 2022 to 14 Aug 2022
USD/CNH refreshed the highest level since 2022 yesterday, with short-term support focusing on the May high of 6.8375. After the RSI failed to break through 70 again, it is showing signs of divergence (the high point in May and the high point of the year refreshed yesterday), suggesting that the exchange rate may turn down in the...
Hello everyone. USDCNH has been moving sideways for the past 3 months until the weaker-than-expected July economic data released this week. In addition, the unexpected rate cut to MLF gave a boost to the pair.
The offshore Chinese currency fell sharply against the dollar by over 700 bps. Now, it pulled back from the previous high around 6.83.
Technically, the...
Following my post on HSI, my focus is also on USDCNH pair. My take is that it is in an upward channel and given the differing monetary policies by the Fed and PBoC, my take is that USD will continue to strengthen. However, we should pay more attention to the Jackson Hole symposium for more insights on the Fed's future rate policies as well as the US labour market...
USD tightening policy vs CNH easing policy
Inflation is like an illness, and medicine needs to be tailored to the specific problem. Both countries policies are deployed to aid individual domestic economy. And right now, the Fed has no control over the main driver of rising prices, however data suggest that domestic economy allows for Fed to press on tightening...
This triangle pattern on the USD v Chinese Juan could mean a significant breakout price move is imminent. I would speculate that the USD is more likely to breakout higher relative to the Juan simply due to poor financial conditions in China with the housing market there in trouble.
Fundamental Insight:
- PBOC Easing Mode
- Zero covid lockdown and Increasing new strain case
- Housing market problems
- Forced regulation on big techs
- King dolla is king
Things you should not bet against and one major of them is commodity currencies. I have done research based on sentiments and everyone is looking for a crisis out of china to be break its market, especially in the housing market.
This is my personal view based on a group of commodity currencies a reversal in all of them in almost certain. Will this push for a...
Interesting possible bullish set up on USDCNH ahead of today US annual June CPI at 14:30 GMT+2
Buy entries should be triggered in case of hourly session close above the downtrend line of yesterday’s high and confirm the break of the bullish flag continuation pattern, with stop loss below today low at 6.7220 and target around 6.7744, giving an overall R/R of 2.
Another fruitful moves seen on this market as mentioned 2 years ago over 5000 pips up !
This update is an continuation of the move up for a measured move swing of high probability
Putting price at 7.0
Where we’ll see if we are going higher or the completion of the bear market either way it’ll b a move to watch n everlasting
Apart from the very aggressive increase in interest rates by the US central bank (The Fed), the recession issue has also made the US dollar a safe-haven choice.
The Fed until last June has raised interest rates 3 times with a total of 150 basis points to 1.5% - 1.75%.
This month, the world's most powerful central bank will again increase by 50 - 75 basis points,...
