Weekly uptrend still intact (USD long position squaring ahead of big political/credit events). Corrective phase should last until 13.70 area (support trendline). Target ard the year's high - 14.50
ANC prez candidate nomination + nov 24th rating review could provide needed catalyst.
Buy @ 13.72
Take profit @ 14.52
Stop Loss @ 13.58
Retracement on psychologial 10.00 level breakout. CB ha no intention of raising rates, deep negative real rates and problems on the housing market. Retracement has reached 50% fib level @ 9.86.
Go Long @ 9.8960
Take Profit @ 10.16
Stop Loss @ 9.85
A bullish pennant is forming. China environmental reform will take a toll on growth and generate inflation. PBoC will probably not be very inclined to tighten policy as this might hurt economic expansion even more and will tolerate higher level of inflation, thus delivering lower real rates that will in the end help CNY depreciate.
