Get started

Yuanlong

Dollar vs Yuan Divergence US Dollar vs Yuan or US Dollar vs Offshore Yuan, technically they are establishing divergence. Above chart is my projection in time to come. When Dollar vs Yuan moves lower, this means we are seeing a weaker Dollar and a stronger Yuan. See the following link for its video version. The Chinese yuan, also known as RMB, is the official currency of China. It is used both onshore in mainland China and offshore in international markets. The offshore yuan, also known as the CNH (Chinese yuan - Hong Kong), is the version of the yuan that is traded outside of mainland China. It is traded in offshore financial centers, such as Hong Kong, Singapore, and London. The offshore yuan is not subject to the same restrictions and regulations as the onshore yuan. The main difference between the onshore and offshore yuan is that the onshore yuan is subject to capital controls imposed by the Chinese government, while the offshore yuan is not subject to these same restrictions. This means that the offshore yuan is more freely tradable and can be used for a wider range of international transactions, such as international trade and investment, while the onshore yuan is more restricted in its use. Offshore Yuan - Standard-Size USD/Offshore RMB (CNH) Outright: 0.0001 per USD increment = 10 CNH MICRO USD/CNH FUTURES 0.0001 offshore Chinese renminbi per USD CNH Option Google search: USD/CNH Monthly Options Contract Specs - CME Group Google search Frequently Asked Questions: USD/CNH options - CME Group Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
CME:CNH1!Short
by konhow
2
Difference - China Yuan and Offshore Yuan The Chinese yuan, also known as RMB, is the official currency of China. It is used both onshore in mainland China and offshore in international markets. The offshore yuan, also known as the CNH (Chinese yuan - Hong Kong), is the version of the yuan that is traded outside of mainland China. It is traded in offshore financial centers, such as Hong Kong, Singapore, and London. The offshore yuan is not subject to the same restrictions and regulations as the onshore yuan. The main difference between the onshore and offshore yuan is that the onshore yuan is subject to capital controls imposed by the Chinese government, while the offshore yuan is not subject to these same restrictions. This means that the offshore yuan is more freely tradable and can be used for a wider range of international transactions, such as international trade and investment, while the onshore yuan is more restricted in its use. Offshore Yuan - Standard-Size USD/Offshore RMB (CNH) Outright: 0.0001 per USD increment = 10 CNH MICRO USD/CNH FUTURES 0.0001 offshore Chinese renminbi per USD CNH Option Google search: USD/CNH Monthly Options Contract Specs - CME Group Google search Frequently Asked Questions: USD/CNH options - CME Group Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
Short
by konhow
Chinese Yuan Has Completed The Bullish Setup To Move UpHey friends hope you are well and welcome to the new update from the forex market. The Chinese Yuan has completed the bullish setup and ready to move up against US Dollar. In today's article we will watch the different chart patterns and indicators that are giving signals for the bullish movement of an Chinese Yuan. A big falling wedge: On long term monthly chart the Chinese Yuan is moving in a falling wedg. And this is considered as a bullish reversal pattern among the traders community. As this is the long term monthly chart and signals and patterns are more firmed on long term charts, therefore there are more chances that it will follow the bullish reversal behavior of falling wedge. At this time the price line of Yuan is at the resistance of wedge. But this time it will be difficult for the priceline to drop up to the support of this wedge. Later this article you will see that strong reasons why the Chinese Yuan will not reach at the support. Down channel and synchronized movement with indicators and EMAs: On weekly chart the priceline can be seen moving within a down channel and the movement within this channel is very much synchronized with the stochastic and Momentum indicators. If you take a closer look at the chart then you will notice that whenever the price line reaches and the support and the stochastic gives bull cross and momentum starts turning bullish then price action takes bullish divergence and reaches up to the resistance of the channel. But this time the priceline of Yuan is almost at the center of the channel and Stochastic has entered in over sold zone and has given bull cross. And the momentum indicator is also changed from strong bearish to weak bearish. Therefore there are more chances that the price action will not move more down to reach the support of the channel. And if the Chinese Yuan will be moved up from here then the exponential moving average 10 can also cross up EMA 21 and this bull cross between the two exponential moving averages can lift the price action more up that can lead to the breakout from this channel. A double bottom formation is cancelling the bearish move of Head & Shoulder: On the weekly chart the price action has formed a Head and Shoulder pattern.The formation of this pattern was started from the September 2019. Now the priceline has crossed down the neckline of the shoulder and reached at $0.1395 support. Now the price action is likely to form a double bottom formation that can cancel the bearish rally that was started due to this H & S pattern. A harmonic BAT formation: On the same weekly chart the price action of Chinese Yuan has completed the formation of bullish BAT and entered in the potential reversal zone. Now we have seen that the different indicators on the weekly chart has given bullish signals and after formation of Head and Shoulder the priceline is likely to form a double bottom for bullish reversal and finally the price action has also formed a harmonic BAT pattern. And at this time it is in PRZ level. Therefore All indicators and patterns are giving strong signal that Chinese Yuan has completed the setup for bullish reversal. And it can start the bullish rally at any time. Conclusion: On the long term signals and patterns are in favor of bulls rather in favor of bears, however the stop loss is must. In this trade we can set the maximum extent of the potential reversal zone as our stop loss.
Long
by moon333
1
Chinese Yuan Is Going To Beat US Dollar Very HardStrong bullish rally and retracement at golden ratio: The Chinese Yuan has been moving up with a strong bullish rally since June 2007 to January 2014 that is almost seven years that the Yuan has been moving up against the US dollars. Then from January 2014 to January 2017 the Chinese Yuan moved down and retraced at 0.618 Fibonacci level that is the golden ratio therefore there were strong chances that it will again move up from this golden ratio and as per expectations the Chinese Yuan moved up again and took another powerful bullish divergence from January 2017 to March 2018 and this move was upto 11.48% for more than a year. Then from March 2018 the Chinese Yuan again started moving down against the US Dollar and at this time it is again at the same golden ratio of 0.618 Fibonacci level . Down channel and volume profile and other indicators: If we switch to the weekly chart then it can be clearly observed that from August 2018 the priceline of Chinese Yuan is now moving in a down channel. After August 2018 the price line has hit at the support of the channel on September 2019. Even though this time after hitting the resistance of the down channel the price action of Yuan is moving down but we can expect that this time the priceline will not reach the support of the channel. If we examine the price action of Yuan then in August 2018 we had the bollinger bands at the support of the channel. And when in Sep 2019 the price action was hitting for the second time on the support the channel at that time the bollinger bands was again at the support of the channel. But this time the Bollinger bands is above the support of this channel and there is a big distance between the support and the lower bands of the bollinger bands. Therefor this time the bollinger bands can play the role of biggest hurdle to stop the price action to move down up to the support of the channel. Here I have also placed the volume profile on the complete price action moving within this channel and after placing the volume profile it can be clearly seen that the trader’s interest is very low below the $0.14. That is almost the same level where we have the lower bands of the Bollinger bands. And the point of control of the volume profile is at $0.1450 that is above the resistance of the channel. Therefore there are strong chances that the price action can move up at anytime at least up to the POC level of the volume profile. Because the point of control of the volume profile always works as a center of gravity for the priceline and whenever the candlesticks move up move down it always pulls back the price action towards itself. And if we see the behavior of the priceline since August 2018 up till now then it can be clearly seen whenever the price action moved up or moved down then it always moves back to the POC level. Here I have also placed the stochastic and momentum indicators. And after placing these indicators we can observe that these both indicators are working in very synchronized manner with Bollinger bands. Whenever the price action hits the Bollinger bands support and stochastic and momentum both give the bull signals together then the priceline moves up to hit the resistance of the channel. Once it was happened on the candlestick of 27th August 2018 and after that the second time it was happened on the candlestick of 9th September 2019. At this time we can see the stochastic is again very close to the oversold zone and momentum is also bearish. Therefore I am again waiting bullish signals from these two indicators for the next bullish rally. Bullish harmonic BAT signal: The strongest bullish signal that I have received is that the price line of Chinese Yuan has completed a bullish BAT harmonic pattern on weekly chart. the formation of this harmonic move was started with the candlestick that was opened and closed on 2nd September 2019. And 1st leg was completed on the candlestick that was opened and closed on 28 January 2020. Then the priceline has been retraced upto 0.50 Fibonacci retracement level this was the first confirmation of the bullish BAT harmonic pattern. After this move we needed the Fibonacci projection between 0.382 to 0.886 Fib projection area of A to B leg and we can see that from 17th September 2020 to 9th March 2020 Chinese Yuan projected between this projection level that was the second confirmation for the bullish harmonic BAT pattern. And finally the priceline is again dropped down and retraced upto 0.786 to 0.886 Fibonacci level and this is a final confirmation of completion of bullish BAT pattern. Now at this time the price action is moving in the potential reversal zone of this bullish BAT and at anytime the price action of Chinese Yuan can move up with a powerful bullish divergence. And as per Fibonacci sequence of sequence if BAT pattern it can be project between 0.382 to 0.786 Fib projection level of A to D leg. Conclusion: We can expect buying zone from $ 0.1407 to $ 0.14 because at $0.14 we have strong supports. And realistically sell target can be from $ 0.1423 to $ 0.1448. If the Chinese Yuan will breakout the channel then we can even expect more powerful bullish rally against US Dollar for years.
Long
by moon333
3
CUP OF CHINESE COFFEE ANYONE?Probable nice CUP O´COFFEE Formation in the Yuan. Devaluation has been happeningin steps of 150pips. so this could be a long and paced devaluation (but pretty safe according to Macros). Macro Astro Mr. Kyle Bass has cited: KYLE BASS: 'We are facing the largest macro imbalance in global history' Rachael Levy 01 Jul 2016 6:58 PM 611 Kyle Bass. "We are facing the largest macro imbalance in global history." That's according to Kyle Bass, founder of hedge fund Hayman Capital Management. Investors better prepare for a Chinese crisis that will mimic what happened in the US mortgage crisis, Bass said in a Friday interview with Real Vision Television. "When I look at what's happening now in China, the amplitude of what's happening is two, three, or four times what happened in the US," he said. Here are Bass' main points: *The Chinese are going to have to accept a devaluation of the yuan. When the Chinese crisis hits, the Chinese are going to have to react similarly to the way central bankers did after the mortgage crisis. "They're going to expand the PBOC's balance sheet. They're going to slash the reserve requirement. They're going to drop the deposit rate to zero. They're going to do everything the US did in our crisis," he said. And it won't look good. "Every single thing the Chinese central bank has to do is currency negative for them." The takeaway? You better get ready. "In the next two years, this is happening. If you want to pretend that it's not going to happen, you're going to do poorly somewhere in your portfolio."
Long
by maguila057