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CNH

RIDE THE PBOC !!!China returning from LNY and an (un)lucky -8% selloff taking the headlines as SHCOMP catches up to the bleeding across Global Equities since last week. Well done those that caught the move we traded live here: A flawless -8% leg in a single gap; as long as the full extent in the impact of this virus remains unclear it will be difficult for SHCOMP to get back above 3,000. These retraces should be seen as good SHCOMP selling opportunities (although tricky in this case for some). The liquidity injection from PBOC will be enough to put the handbrake on the selloff, this area is of focus and here looking for 2983 to the topside while 2650 is the area of focus below. China a much bigger part of global growth now; almost 2/3 of China is in shutdown meaning PMIs are likely to dip next month. We have some time to complete the retrace before reassessing if the coronavirus impact can be looked through or if we will need to change MT and LT outlooks. A transmission leg, not for the feint of heart. Thanks as usual for keeping the support coming with your likes, comments, charts and etc! Good luck all those trading SHCOMP after the last 8% move we can afford to leave some chips on the table.
SLong
by ridethepig
8
ridethepig | CNH Spot Commentary 2020.02.03An important update to the CNH chart after the latest coronavirus measurements and impact calculations. PBOC stepped in as expected to stop the bleeding and SHCOMP ending the day with a lucky -8%: In the FX market, the impact will show over the coming sessions as demand for CNH increases with capital rushing to the doors. This is not a healthy technical looking picture, buyers were tracking the "Cup and Handle" formation earlier last year till we traded the rejection live in the diagram: Although it takes a brave man to step against the current flows as they have been short-circuited via a temporary demand shock, I continue to look to ride the pig to the downside here and trade the leg towards the lows in the 6 handle via USD devaluation. Good luck all those navigating around the coronavirus flows, we will keep the charts updated incase of any breakouts to the topside. If this is the case we will need to reassess the view as the 7.27xx technical target which I mentioned earlier would be back in play. Thanks for keeping the support coming with likes, comments and etc!
Short
by ridethepig
USDCNH, US Dollar - China Yuan: Falling WedgeFX:USDCNH If a bullish breakout should occur on this falling wedge, we will eventually try to get back on this cross. The first trade closed at a loss at 60% of the initial maximum risk. In this way we had optimized the realized losses reducing as often happens the % at initial risk. We do the same thing when trades follow our direction and also optimize profits. What happens in this way? We conclude trades in 45% of cases with a profit of 3/4 times the losses. We have even earned 20 times more than the initial risk a few times. Our first goal is always not to lose money. Why? Because we have learned from the best traders in history, and we want to take part in that elite as well. Happy Trading to All!
Long
by SwissTradingSchool
1
USDCNH correction over, trend resumes Here we are coming to the end of the corrective wave within the underlying bull trend. The time has come to start getting to work on the top-side here again, this is a move we have been tracking for some months (see attached). We are going to be exploring the speed limit of the dollar over the next few months so buckle up and get ready for some very large moves across FX . Like the rest of the USD board, markets have been corrective and now is the time to re-establish upside exposure. Initial targets for the weekly move come in at 6.97 . There is scope to continue as far as 7.10 and 7.20. Best of luck those who are navigating around the US-China trade flows.
Long
by ridethepig
Can you afford to ignore the Renminbi rally? NO!What happened last time...: Clearly, we hit a very strong support... What's this? It's a Bird...It's a Plane... NO! It's the Chinese Renminbi making a double bottom on the monthly chart! And a higher LOW! WOW! The US are turning socialist and the FED have DESTROYED the us dollar. It is getting abandonned. China is becoming a TITAN and the Yuan is a new PARADIGM! The new worldwide monetary system. Those that do not buy a whole lot of little yuans now or soon will regret it for the rest of their lives.
Long
by MrRenev
2