USDCNH | Perspective for the new week
It has been months since I published any speculation as our last publication on this pair saw us bag over 1,000pips ( see link below for reference purposes).
China is on the brink of launching its CBDC - Digital Yuan. To facilitate its smooth launch, the digital yuan had to undergo several testings. In line with this, the government in Shenzhen, a metropolis in China, has disclosed plans to distribute 20 million digital yuan (approximately $3 million) to the city’s residents... This could be an exciting development for investors as the Yuan continue to rise against the Greenback in recent times.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline | Harmonic (AB = CD)
Observation: i. Y6.95000 level remains my key level as this zone shall be the yardstick for selling opportunity in the coming week(s).
ii. Successful Breakdown of Key level at the beginning of the new year is a sign that the Yuan will continue to appreciate.
iii. Presently experiencing traders profiting from the boom that began the year, a correction into 61.8/78.6% is on my radar for a trading opportunity.
iv. Suspected ABCD pattern parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is at 61.8% currently (with a possible 78.6% in the future) Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext. of the A-to-B move.
Trading plan: SELL confirmation with a minimum potential profit of 1,000 pips.
Risk/Reward: 1:3.5
Potential Duration: 10 to 20 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
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.
China is on the brink of launching its CBDC - Digital Yuan. To facilitate its smooth launch, the digital yuan had to undergo several testings. In line with this, the government in Shenzhen, a metropolis in China, has disclosed plans to distribute 20 million digital yuan (approximately $3 million) to the city’s residents... This could be an exciting development for investors as the Yuan continue to rise against the Greenback in recent times.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline | Harmonic (AB = CD)
Observation: i. Y6.95000 level remains my key level as this zone shall be the yardstick for selling opportunity in the coming week(s).
ii. Successful Breakdown of Key level at the beginning of the new year is a sign that the Yuan will continue to appreciate.
iii. Presently experiencing traders profiting from the boom that began the year, a correction into 61.8/78.6% is on my radar for a trading opportunity.
iv. Suspected ABCD pattern parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is at 61.8% currently (with a possible 78.6% in the future) Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext. of the A-to-B move.
Trading plan: SELL confirmation with a minimum potential profit of 1,000 pips.
Risk/Reward: 1:3.5
Potential Duration: 10 to 20 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
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.
Trade smart. Trade consciously
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