USDCNH trade ideas
China’s recovering economyDespite the recent upside faced by the exchange rate, it looks like the bearish trend isn’t over yet. The prices of the US dollar to the Chinese yuan exchange rate should continue to buckle and get lower, hitting its support line in the latter half of the month. The positive sentiment in China’s recovering economy is helping bearish investors keep the pair grounded in the trading sessions. Meanwhile, it was just recently reported that the United States President, Donald Trump, raised the idea of decoupling the two biggest economies. Trump suggested that separating the United States from China would not hinder the two powerhouses economically. This idea could hurt the US dollar as the recovery of the American economy can be tied to some of its businesses and activities with mainland China. With the presidential elections fast approaching in the US, the market is bracing itself to the possible outcome, whether it would be Biden or Trump again.
USDCNH Long IdeaThis is one of my favorite setups on the 4H Chart.
We are looking for RSI divergence at extreme levels - must be oversold on both lows, and must have divergence. We then look at the fibonnaci inversion for entry points.
USDCNH Weekly Candlesticks & Ichimoku ChartWith the Chinese economy strongly recovering, and the PBOC being one of the rare few central banks which is not printing like there’s no tomorrow, the outperformance of the CNH is just beginning.
USDCNH has closed below the weekly Ichimoku cloud convincingly. Any pullbacks to 6.93–94 will be a good opportunity to get short for a test of 6.70 and below!
USDCNH Long term Short trade Idea UPDATEIt has certainly been quite a while since I last spoke of or posted a USDCNH setup and this has been the primary reason. The trade has been
playing out for just over a month now and TP 1 has just been hit. I haven't always been one to have medium to long term trades, a week and
a half (max) is usually enough for my setups to play out. I did, however, enjoy the patience lesson in this trade and more so how to control
my emotions as well as thought stability through and through. I do recommend a medium to long term trade from time to time to stretch
the mental endurance capacity. I hope you had a lovely week and are well en-route to preparing for the new week ahead. Have a lovely one.
This was Recently Oversold: USDCNH LongCurrently for a forex pair, I am actually long on the USDCNH. Given its past bull run, the correlations have been mostly bearish likely targeted by panic selling over warranted negative sentiment. That being said, I think it is starting to retest positive. Please keep in mind, everything I say is on an opinion based basis. Please proceed with caution and invest at your own risk. Do your own due diligence.
Possible SHORT position on USDCNHWaiting for a break and retest of the S/R Zone to jump in for SHORTS.
USDCNH buysFundamentals:
Mixed
Technicals:
D1 bullish gartley, price reaching W1 (weekly time frame) support
USDCNH ANALYSISUSDCNH rebounded from downtrendline with bearish movement
Price is rejected from 50% Fibonacci level at 6.9252
Pair is based below key level
Below SMA 100
MACD shows weakness in bullish momentum
RSI is below level 50
It's expected for coming bearish wave (c) to target daily demand zone at level 6.8454
SHORT ON USDCNHUSDCNH has been dropping since 28th May. We might see a push to the downside to the lows of 20th January.
USDCNH ANALYSISUSDCNH broke major uptrendline on daily frame
Price respects major downtrendline
Pair is based below resistance level at 6.9630
Below SMA 100
MACD shows bearish momentum
It's expected for the continuation of bearish movement to target key level at 6.8165
USDCNH | MY PERSPECTIVE FOR THE WEEKWe continue to enjoy profitable Bearish opportunity on this pair in the last 3 weeks as price moved over 350pips in our direction since my last publication (see link below for reference purposes). We might be looking forward to a last Bearish drive as the PBoC intends to promote the healthy development of offshore Yuan market.
Tendency: Downtrend ( Bearish )
Structure: Supply & Demand | Trendline
Observation: i. Price has been respecting my Bearish trendline in the last couple of weeks with no structure suggesting a possible Breakout of this line soon.
ii. Present structure at this phase in the market is screaming Breakdown of my Key level ! 6.93500 in the coming week(s).
Trading plan: SELL confirmation with a minimum potential profit of 350 pips.
Risk/Reward: 1:3
Potential Duration: 1 to 6 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
NirvanaForex
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
USDCHN could be forming a falling wedgeAs can be seen, the price seems to form a falling wedge which I marked with maroon. Since the price has been falling for a while, the pressure of sale could be less than the beginning.
As I said, the price seems to form a falling wedge, so the wedge is incomplete. And the price could fluctuate several times for this forming process.
Since the price would continue to fluctuate for a while, the MACD and the RSI cannot offer us too much hint about the trend after the wedge.
Basically, the price could go up after falling wedge, however, we do not have too much signal for that.
Let’s wait to see the end of the wedge.
..a nice move to the downside today!USDCNH short
stoploss at the 0.786 fibonacci level
target -0.272 from the fibonacci level
