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Chineseyuan

USD/CNH Falling Wedge May Hint at Uptrend ResumptionThe US Dollar has been rising against the Chinese Yuan in June so far. On the 4-hour chart, USD/CNH appears to be carving out a bullish Falling Wedge chart formation. A breakout above, with resistance as the 23.6% Fibonacci extension at 6.7304, opens the door to perhaps revisiting the May high at 6.8375. Otherwise, a turn back lower towards 6.6131 would keep the Yuan on a slow and steady appreciation course against the US Dollar within the boundaries of the Falling Wedge. FX_IDC:USDCNH
Long
by QM_Dubrovsky
USD/CNH May Resume Broader Uptrend as China Faces Growth WoesThe US Dollar may regain its footing against the Chinese Yuan amid favorable fundamental headwinds. China's zero-Covid policy has been weighing on local economic output. Meanwhile, rising fears of a recession in the US are slowly weakening global growth expectations. This leaves China in a tricky spot, even if conditions open up locally. A slowing global economy could sap the demand for Chinese goods. Diverging monetary policy is also favoring the US Dollar against the Chinese currency. On the daily chart, USD/CNH has left behind a bullish Morning Star candlestick pattern. Further upside follow-through could open the door to further gains. That would place the focus on the May high at 6.8376. Otherwise, clearing immediate support at 6.6480 exposes the Mat low at 6.6119 as the 50-day Simple Moving Average nears.
by QM_Dubrovsky
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.
by thunderpips
USDCNH BULLISHA lot can be expected between the US dollar and the Chinese Yuan in the next coming days / weeks. I think history has the best story to tell and here, I share my overall trends in which the USDCNH has been trading. The U.S. dollar greatly depreciated against the Chinese Yuan and created a pin bar on its all time ascending support I think we could potentially see a strong dollar against the Yuan in the next coming days. Please leave a like to show your support 🤗. Thank you
Long
by Timgucci
2
USD CNH BUY (US DOLLAR - CHINESE YUAN)Hi there. Price is forming a reversal pattern to change its direction. These are the fundamental reasons for a possible USD/CNH bullish scenario: Sentiment shifts: Bullish scenario: A breakdown in US stimulus talks and a possible towards a government shutdown; FDA rejecting or postponing the approval of the Pfizer vaccine; a breakdown in Brexit talks with no deal by EU summit. In this scenario we would expect to see downside in equities across the board, with US equities expected to fall more if we see US stimulus talks break down and more downside for EU equities if we see Brexit talks collapse and upside in the dollar across the board. Strong equity sell offs are usually accompanied with some support for the US dollar as the world’s reserve currency and with its safe haven status as well as Japanese yen and Swiss franc .
by thunderpips
USD vs Chinese Yuan - KEY LEVELPrice development of USDCNH is likely to set the tone for US Dollar for the entire market. As this is a sort of "Hidden dollar index" as its correlated with EURUSD . Right now we saw dollar bounce back as we hit yearly low. Most likely it was a fakeout - piercing through the 2019 low. If this week closes with a pinbar dollar most likely bounce back. The way chart looks now its LONG but it may change. Lets see where we close tomorrow. We need more definite signs as there are price inefficiencies (yellow zones, illiquid rides) both directions. Price is set to fill them. If we see accumulation below the yearly low - the drop will continue. Top Absolute Correlation 1 Week 1 USDCNH - XNGUSD -73.9% 2 USDCNH - EURUSD -72.6% ----------------------------------------- 3 USDCNH - XAGUSD -72.6% 4 USDCNH - XAGEUR -71.8% 5 USDCNH - EURJPY -70.5% ---------------------------------------------- 6 USDCNH - XAGAUD -70.1% 7 USDCNH - USDSGD 69.5% 8 USDCNH - USDPLN 69.1% 9 USDCNH - NZDUSD -68.7% 10 USDCNH - USDCAD 68.4%
by ICFX