USDCNH sell signal!!this pair has given a sell opportunity. Rejection from the top side on 4H
Manage risk to 1%
USDCNH trade ideas
Short on the USDCHNYuan Strength showing against the dollar, expecting another leg lower. Good luck.
USDCNH | Perspective for the new week The price moved against expectation as it continues to find lower lows in the last one month (you might want to see the link below for reference purposes);
As part of China’s move to create awareness of its digital Yuan, authorities in Shanghai is planning to distribute $3 million worth of the central bank-issued currency among residents of Shanghai in the form of a lottery. Coupled with the appearance of a Descending Channel, this development appears to give a level of cynosure for investors as I anticipate a risk of further decline for the USDCNH pair in the coming week(s).
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Channel | Breakdown | Harmonic pattern (AB = CD)
Observation: i. Since late March 2021, the price has been caught up within a Descending channel as the Greenback experiences risk of further decline in the nearest future.
ii. As represented on the chart, connecting the lower highs and lower lows of price action with parallel trendlines reveals a downward trend that appears to hold following the Breakdown and retest of Y6.41000.
iii. Below the Key level @ Y6.39600 remains a yardstick for entry opportunity as I look forward to a transition into a Harmonic pattern (AB = CD) with 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 currently at 61.8% Fibonacci retracement (with the possibility of a 78.6%) 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 @ Y6.32000 area.
Trading plan: SELL confirmation with a minimum potential profit of 550 pips.
Risk/Reward : 1:4
Potential Duration: 4 to 8 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks 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.
USD/CNH Daily & 4HThis pair has been bearish for a long time. recently just broke a Support @ 6.40600.
Now it has tested the Support that now is Resistant and it will go back and push down to at least previous low.
Market Insight: Maintaining a forecast of 6.30 by end 2021 - INGING discussed its expectations for the USDCNY in a recent note to clients.
Finally, the PBoC acts to deter yuan appreciation
After several rounds of talking down yuan appreciation, China's central bank has now taken some firmer action. The PBoC will raise fx deposit reserves from 5% to 7% effective from 15th June. This comes after the PBoC appreciated the USDCNY fixing this morning to 6.3681 from last Friday's 6.3858.
Will this work?
We believe that this increase in foreign deposit reserves will help to deter speculators and shield the yuan from further rapid appreciation unless those speculators believe that the yuan wil appreciate by more than 2% points from now even after the PBoC has sent this strong signal. In short, this should be enough to slow the pace of the yuan's appreciation. But it may not stop it.
Is this a backward move on exchange rate liberalisation?
This sounds a bit like a retrograde step to the PBoC's ambitions on exchange rate liberalisation. But it isn't really.
Looking at the fixing, which continued this morning to follow overnight developments of the dollar index, it looks as if the PBoC still wants to stick to the idea of exchange rate liberalisation. But this is difficult to achieve if the PBoC doesn't like speculators occasionally taking charge of the direction and pace of the yuan FX market. A market consists of FX users and investors, including speculators.
We interpret the foreign deposit reserves as a tool to deter speculation, not yuan users (such as exporters and importers). And this type of administrative measure will continue to be used repeatedly when yuan moves look to be dominated too much by speculators. We are maintaining our USDCNY forecast at 6.30 for the end of 2021.
USDCHNGoing short, only once we hit next resistance area.
Put the order in there to go into it once it gets hit.
Bullish Shark: USD will attempt a second bounce from the SupportLets see if we can catch a reaction here: I will be targeting atleast 6.75 for profit taking
The dollar is close to a 5-year support against the yuanDescription :
Movements between the two currencies fluctuate sharply, as the dollar has fallen about 10 percent against the yuan since last year.
But it is close to a support that is about 3 years after the last collision. Also, the dollar index has been declining over the past year. It is possible that we will see the sheet return after the support collision as in the past.
USDCNH Very interesting area!I'm thinking this has a good chance of being bearish fakeout candle. I think it may close above the trendline. If it does then we wait for another week close then make a decision. I like these long term/plant it and forget it trades.
USDCNH Catching falling knives Hoping for the best preparing for the worst. Export demand will wane from appreciation costs from lowing commodity costs. As commodity prices break lower so will the yuan.
USDCNH Top-down analysisHi Guys, this is the full breakdown of this pair. We will take this trade if all the conditions are satisfied as discussed in the analysis video. Smash the like button if you find value in this analysis and drop a comment if you have any questions or let me know which pair to cover my next analysis.
Also let me know your thought in the comment section what you think about this pair.
Chinese Yuan Bullish Performance About To Halt Against DollarsChinese Yuan has been performing very well against the USD, but that bullish run is about to be halted! USDCNH has pullback to the monthly ascending trendline and also on a good support level. Expecting price rejections at this level for another rally to the north.
N.B
- Let emotions and sentiments work for you
-ALWAYS Use Proper Risk Management In Your Trades
USDCNH - My OpinionPositive with the climb of USDCNH, because of DXY and of course really overbought Chinese yuan. Looking for 6 - 7% easily in half a year, with leverage it should be decent and safe.
USDCNH - Double Bottom USDCNH has been technically sound. Been following all the rules of technical patterns. As we're anticipating USD strength, we may see a push up for this pair. It looks to have reversed at the perfect place where it created a double bottom
Please note that trading exotic pairs carries bigger risks than trading major pairs.
Goodluck and trade safe!
USDCNH - Double BottomUSDCNH has been technically sound. Been following all the rules of technical patterns. As we're anticipating USD strength, we may see a push up for this pair. It looks to have reversed at the perfect place where it created a double bottom
Please note that trading exotic pairs carries bigger risks than trading major pairs.
Goodluck and trade safe!
USDCHN Bounces Off SupportI am going long after seeing bullish activity on weekly support. I am targeting previous resistance.
