When a breakout happens, target is around 8 to 10% Yuan devaluation. Chinese goods could use a 10% devaluation. I find their goods relatively high priced compared to similar quality goods around East Asia.
On the monthly/weekly we can have a 50% retracement up to 1.1875.
On the daily, we are expecting to test the upper bound of the downward sloping channel since the beginning of 2019.
Downward sloping channel upper bound: 1.1393
.786 Fib from early March swing: 1.1366
Potential TP: 1.1265
Since the ECB on 20190307, we haven't retraced 50% of this 7 day crawl up....
Expecting volatility event today, didn't enter into any GU trades. Glad I didn't or I would've been early. I usually find myself a very good trade in real time and I often doubt my impulse since I've been wrong a lot. This time however, and a couple of times the past few weeks, i've been right.
GU ran up near 1.33, reacted a bit then pulled back 50% from that...
Failed to push through or hold above the resistance zone of this monthly range.
Expect to fall back to 1.28 zone. Daily price relatively rose too high too soon. Increases the likelihood of a quick revert back to at least the middle of the range.