USDCNH trend is reversing!Look at the chart and the channel, a ABC of 6 years is over.
Expect USDCNH to go blow 6.
CNHUSD trade ideas
USD/CNH Weekly channel- possible long opportunityAs we can see, USD/CNH has been moving within an upward channel on the weekly timeframe. The price is currently near the bottom of the channel, so as we monitor price action in this area, we will look for a long opportunity after seeing bullish momentum come in.
USDCNH | WEEKLY FORECASTThe Yuan has been on the rise since the beginning of June 2020 and it does not appear that there will be a "slow-down" in the following week as the Greenback continues to depreciate.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Descending Triangle | Support & Resistance
Observation: i. A structure depicted by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows confirms our Descending Triangle .
ii. This pattern clearly explains that the Demand for the USD is weakening;
iii . As we anticipate price to break below our lower support @ 7.05000 (a psychological level) indicating downside momentum will become stronger in the following week(s).
iii . In as much that we shall be wary of false Breakdowns at the lower support, we shall eye a further Breakdown of Daily chart Trendline with engulfing candles as comfort .
iv. Please note that as the price keeps putting pressure on the 1st Key level throughout last week, a Breakdown of this level might be a zone to initiate sell order for quick gains.
Trading plan: SELL confirmation with a minimum potential profit of 450 pips.
Risk/Reward: 1:2.5
Potential Duration: 1 to 5 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 NFTI takes 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.
NFT&I does 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.
Chinese fight backThe resistance zone has worked well, and the rising wedge broke down definitely. Now a clear sideways movement is ongoing, so sooner or later the next downside pressure should come and lead the price below the rising trendlines.
Next target lies at 7, 6.85, 6.7 but I forecast more Yuan strengthening to 6.3.
Any trading above 7.2 will open the door in front of the USD bulls and further rising should come.
The US dollar was seen sliding against the Chinese yuanEarlier this week, the US dollar was seen sliding against the Chinese yuan thanks to the upbeat results from mainland China’s economy. Unfortunately for the Chinese yuan, it wasn’t able to hold on to its gains in the sessions thanks to the recent news about rate cuts from the People’s Bank of China. The pair is now projected to rally towards resistance level in the coming sessions, a feat that should bolster the 50-day moving average against the 200-day moving average. Earlier this week, the Chinese manufacturing PMI from June showed a gradual improvement from 50.6% to about 50.9%, topping projections of about 5.4%. Aside from that, the Caixin manufacturing PMI for June also showed an increase in the private manufacturing sector from 50.7% to about 51.2%. the main source of the yuan’s weakness is the decision of the PBOC to set its midpoint rate earlier today, giving room for bullish investors to thrive in the trading sessions.
USD CNH - Escalation of Tensions !Relationships between the U.S and China have been deteriorating at a really fast pace since the begging of the Trade War between both countries back in 2018, where hundreds of billions of dollars in taxes over nationals goods, were exchanged. Despite the escalation of tensions, Trump's primary goal was to try to please the agricultural sector, since the farmer's states integrate a meaningful part of its electorate, so aiming re-election the promise of China in boosting its purchases of U.S agricultural goods served Trump needs.
However, the disastrous response of Trump to the COVID-19 outbreak in the U.S and other domestic crises has put its chances of re-election in jeopardy. With almost 3 million cases confirmed and more than 130,000 American lives ended, plus the massive riots across the country due to the murder of George Floyd by cops and the economic crisis that is hitting the country with an unemployment rate of 13.3%. A context that has been causing the growth of the dissatisfaction of the population with the state of the country, such discontentment is already appearing on the recent polls that put the Democrat candidate Joe Biden in a 10 points lead over Trump.
With the risk of losing re-election, Trump might use the oldest trick of the book of governors that want to unify the country and take the focus off its own failures, create a common enemy. In this case, China its the perfect fit, since the country was the first to report the new Coronavirus and has been moving to curb Hong Kong autonomy through the new security law. So Trump can target China first by blaming the country over the pandemic, and retaliating in defense of Hong Kong democracy, placing then meaningful sanctions and increasing the friction between both countries.
Looking at the monthly chart, the US Dollar Chinese Yuan Offshore is in a very intrigue spot now since the price is moving accordingly to the Elliott Wave rules so far, with a Wave 3 in process of formation. After the price confirmed a Wave 2 due to the retracement of near 76.4% of Wave 1, the CNH managed to surpass the top of Wave 1 confirming a possible Wave 3 that has the following targets based on the rules that determine the extension of this wave:
Targets:
1) 7.80869 - 161.8% of wave 1-2
2) 8.18008 - 200% of wave 1-2
3) 8.78091 - 261.8% of wave 1-2
4) 9.38174 - 323.6% of wave 1-2
This context shows us the possibilities of this new large impulse movement of the USD CNH been the reflection of the rasing of tensions between China and the U.S, as China will fight to increase the yuan relevance on the market as the U.S will try to undermine China influence on the global economy.
Thanks for reading, please feel free to share your comments and perspectives below, I'm still grinding my way to improve my analysis, so all feedback is welcome.
"A crisis is an opportunity riding the dangerous wind" - Chinese Proverb
Forex USD/CNH buy signals on W1USD/CNH, Weekly timeframe: Horizontal mirror level + Support line + Hammer candle pattern
USDCNH is to sell on Supply Zone cause we have also got triangleWe have
1. Supply Zone
2. Strong Resistance
3. Triangle Formation
USDCNH A Great Buying OpportunityTrade Proposal:
There is a probability of first tp to the proposed (7.13388) Direction line. So, Traders can set orders based on Price Action and expect to reach short-term goals.
Technical analysis:
USDCNH Waiting for the Range Bound and the beginning of the Ascension Trend.
TP1= 7.13388
TP2= 7.19428
The Chinese yuan notably strengthened against other currenciesLast week, the Chinese yuan notably strengthened against other major currencies in the forex market, especially against the beloved US dollar. However, the fluctuations in the risk sentiment in the global market is bound to boost the safe-haven appeal of the US dollar. The agonizingly prolonged tension between the United States and mainland China should help propel the US dollar to the Chinese yuan exchange rate’s prices towards their resistance level. Just recently, it was reported that Robert O/Brien, US President Trump’s national security adviser, compared Chinese President Xi Jinping to Josef Stalin, a known Soviet Dictator. The comment escalated the concerns for the trade deal between the two economic giants. The rather aggressive speech from O’Brien reportedly lambasted the Chinese leader. Trump’s national security adviser then added that the Chinese government wants to remake the world based on its image.
UPDATE!! USDCNH near to a melting point? 🦐After our last call on this pair the market seem to carry on the down trend and now found a support area on the upper trend line.
IF the market will break the trend line and consequently break the support structure at the resets we can look for a nice short order according to our strategy.
For the one who enter in the trade at the previous signal they can keep their position and go risk free on the trade.
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Here is the Plancton0618 technical analysis , please comment below if you have any question.
The ENTRY in the market will be taken only if the condition of Plancton0618 strategy will trigger.
USDCNHHello dear traders. Here my idea to USDCNH. we will expect bullish continuation to 7.116 level.
Traders, if you liked this idea or have your opinion on it, write in the comments.please like and subscribe to my profile.
Good luck to you.
This idea does not provide the financial advice.
USDCNH ANALYSISUSDCNH is based above key level at 7.0410
Price broke corrective downtrendline
Pair is forming inverted Head & Shoulders pattern
Price is based on HVN at level 7.0822 which indicates that pair is in accumulation phase
MACD shows starting of bullish momentum
RSI is in uptrend
It's expected for coming bullish wave to target resistance level at 7.1980
USDCNH On Key Level! Trading Plan:
USDCNH reached key daily structure support.
touching the underlined level we see a bullish engulfing candle confirming the significance of this level.
on 4H the price is currently forming a right shoulder of inverted head and shoulders pattern formation.
7.09 is its neckline.
wait for a 4H bullish breakout of it and then buy on retest or aggressively (4H candle close above).
the initial target will be - 7.125
if the market goes lower and closes below head level, setup will be invalid.
USD/CNH LONG IDEA As we can noticed we have a beautiful head and shoulders pattern here i would really like to buy after breaking the neck line
tp and SL are explained in the chart , best luck for all of you <3
7.03 is tested. Target resistance: 7.1015/Jun/2020:
Perfect test and respected at
(7.03-7.04) level.
Upper resistance:
Level 1: (7.099 - 7.105),
Level 2: (7.13 - 7.14).
USDCNH Long OpportunityUSDCNH Long after a test with the upward trendline. Stochastic oscillator indicator shows %K has moved above %D in the lower 20 band, indicating a long opportunity as the currency is currently oversold. Also above the 200 EMA which adds further confluences to the indication.
