Hawks vs Doves, the battle of CNH…
CCNH1!
Birds of different feathers are likely not to flock together! As policy divergence continues between the US Fed (Hawkish) vs the PBoC (Dovish), we expect the Dollar to strengthen against the RMB on a macro level.
On the technical side, we see a bullish RSI divergence (prices making lower lows while RSI making higher lows), suggesting that momentum is nearing the end and potentially reversing. We also note proximity to the long-term support level since 2014 as an additional bullish factor.
Entry at 6.355, stop at 6.2955. Targets are 6.580 and 6.720.
Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
Birds of different feathers are likely not to flock together! As policy divergence continues between the US Fed (Hawkish) vs the PBoC (Dovish), we expect the Dollar to strengthen against the RMB on a macro level.
On the technical side, we see a bullish RSI divergence (prices making lower lows while RSI making higher lows), suggesting that momentum is nearing the end and potentially reversing. We also note proximity to the long-term support level since 2014 as an additional bullish factor.
Entry at 6.355, stop at 6.2955. Targets are 6.580 and 6.720.
Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
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Disclaimer
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