USDCNH
Chinese yuan strengthen slightly after tariff delay announcedThe Chinese yuan rallied a bit against the US dollar during trading on Tuesday as the Americans announced that they were delaying tariffs against China as the two sides have decided to speak again via phone within the next couple of weeks. At this point, that gave quite a bit of hope for the People’s Bank of China to lower the fixing rate overnight.
There was a significant amount of attraction paid to the idea of the USD/CNH pair breaking above the 7 handle. We have reached back towards that level again, so now it’ll be interesting to see how the Chinese central bank reacts. It looks as if we are still very much in and uptrend though, and of course the psychologically important 7 handle will come into play. You can see that the Fibonacci retracement level of 50% was tested after this flash crash, and we have bounced a bit since then. Ultimately, the market is very likely to find buyers in this general vicinity, as even though we have signs of strength in the yuan for the day, we are still very much in and uptrend.
Keep in mind that there is a massive US dollars shortage out there for paying off debts, and this will continue to drive the value of the US dollar higher. Beyond that, the technical analysis looks rather strong. Yes, it was a very sharp move lower but that’s not that uncommon in this pair as you can see over the last couple of weeks. The fact that the buyers have come in at the 7 handle tells me that larger institutions are interested in buying greenbacks of this area as well. I see support all the way down to the 6.94 yuan level, as it features not only the 50 day EMA but it also features the 61.8% Fibonacci retracement level.
China's Next Move - As of late Monday, US Treasury Secretary Steven Mnuchin formally designated China as Currency Manipulator. If we weren't already in a trade war, this is undoubtedly a tipping point as to how aggressive the administration is willing to get with their trading partners...
Another fib projection idea for the USDCNHI'm publishing this fib projection on USDCNH for reference later, to see if any of the upcoming levels are respected.
USDCNH 3day with Trend-based-fib pull - expecting 4.618-5 testThis is the USDCNH on the 3day. Big breakout day today, breaking pretty major weekly/monthly/quarterly highs here. I'd start looking for shorts/profit targets around that 4.618-5 area, I'm thinking we test 7.2-7.25.
USDCNH short opportunity sistance here, got some great R:R, is worth a punt imo . Stop invalidates the setup, potentially looking to long if this trade becomes invalid. Ideally would like to see that gap getting filled. GL
Chart of the day: $CNH is knock knock knocking on $7If the Donald wants to play rough with China, will the Chinese continue to play nice by suppressing the RMB?
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.
USD/CNH SHORT IDEAWe see a bearish impulse down. Price is now in corrective phase. Expecting to see a continuation downward followed by another flag. Trade at your own risk. This idea is for demonstration and educational purposes only.
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USDCNH down we go???Looks like the FX_IDC:USDCNH is going down as the CNH is strenghtening because it is getting obvious now Xi is getting the better part of the trade war deal and Trump might have been outsmarted. As this trade has got a huge downward potential it's something I want to be in. Th break of this flag and retest looks like a good start to building a position.
short USDYUAN @ 6.95SL: 7.02
TP: 2R
don't overanalyze, Trading is not about Analyze, be a Trader, not a Predicter
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.
USA vs China / TRADE WAR $USDCNH ... Cup & Handle pattern right there in the bigger picture.
We then got a rising wedge shorter term. Why? Look at the #TradeWar and it makes perfect sense. Wait for confirmations and you got a safe setup right there ! The Trade War is going on and it´s getting harder and harder every week for both the USA and China. So guess where this pair might go?
Look at the very least for a 1:1 ratio or much more.
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