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USDCNH

Could positive momentum on USD/CNY continue? Risk overall continues to ebb and flow on US-China trade uncertainty and looks somewhat asymmetric, tilted to the downside, based on our view that the HK Bill if passed through the House of Reps could seriously complicate trade talks and the signing of Phase 1. Stock markets are on the rise, and the risk-on atmosphere is weighing on USD, JPY and gold. Last week the US dollar made its the best performance in nearly 3 months against the Chinese Yuan. USD/CNY is likely to hold below 7.05/04 in the near-term with a possible decline likely to be limited around 7.00-6.95. On other side, the technical indicators are constructive, and there appears to be near-term potential rally to the 7.06/08 resistance area (the highs since October's end). The dollar moved above its 20-day SMA for the first time since mid-October. Also on the 4-hour chart this SMA coincide to the middle line of the Bollinger Badns and the price broke above it. It may offer support now. You should take in mind also China PMIs data at the end of the week. Another decline could seriously impinge on the soft landing narrative markets have been forming over the past few weeks and draw a market-negative reaction.
by ForexTrendline
US dollar continues to grind higher against YuanThe US dollar continues to rally against the Chinese Yuan, grinding higher and above the 7.00 CNH level. The market has recently seen the 200 day EMA level as support and bounce quite nicely from there. By doing so, we have attacked the 50 day EMA, but have not broken above it yet. If we can close above there on a daily chart, then it becomes a very bullish sign. Overall, that could send the market looking towards the 7.15 CNH level, but it’s going to take some time to get there. Keep in mind that this pair is essentially “Ground Zero” when it comes to the US/China trade war, and as a result it will go up and down based upon whether or not there is some type of an agreement. This pair will literally go back and forth based upon whether or not people feel good about the deal or not. Recently, there has been a bit of a grind higher, and that suggest that perhaps people are a bit cautious and therefore buying the US dollar. Despite what some politicians in the United States will tell you, the Chinese do not want the currency pair to go too much higher, because most of their debt is denominated in US dollars. In other words, the higher this market goes, the more dangerous their debt becomes. As it rises, it is a sign that people are becoming more and more concerned, and if you do not trade this market, it should be thought of as a barometer on risk appetite. If this pair rises, quite often it means trouble in other risky assets around the world. This is something that unfortunately retail traders don’t pay much attention to, so it gives you a bit of a “leg up” on how the world is feeling about this US/China situation. That being said, it does make a nice longer-term market, and closing above that 50 day EMA, offers a significant move higher.
by Forex4you
USDCNH 10/11/2019Hello Traders! Witaj! We play with Smartmoney concepts, that means that we focus mostly on price action to determine what will happen in future. As we all know, price is moved by BIG players: Banks, Institutional traders, HFT bots (we call them all of them SmartMoney). They can't play as we do, cause of a HUGE lot sizes, so cause of that they need to SELL to BUY and BUY to SELL for positioning them self in the best possible spot. If u were learn about trading from free and accessible knowledge, u probably heard about BUYing LOW and SELLing HIGH? So SmartMoney must BUY LOWER and SELL HIGHER :) We as retail traders are just a small fish in this ocean, so we need to catch the waves which are created by SmartMoney. Don't forget to like if it was helpful to you. We appreciate likes and comments. Jesli podobal Ci sie material zostaw like:) Masz pytania - pisz smialo :) Thank you, Dzieki za uwage :) GOD BLESS U ALL!
by Snipers-Academy
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ORBEX: TOO Many "Insurance" CUTS! Where Risk Takes Us?In today’s #marketinsights video recording, I talk about #Fed's rate cut and identify the main components leading to their decision. I also talk about their decision toolbox and wonder whether they should start looking at slowing inflation with a different eye? One that doesn't look at trade wars with such certainty. With Fed, BOC and now also BOJ out, we can't miss the opportunities appearing on #cadjpy and #usdcnh, can we? Stavros Tousios Head of Investment Research Orbex This analysis is provided as general market commentary and does not constitute investment advice
by Orbex