Chinese letting the USD recover while they conquer the universeIf you like Elliott waves this pair is doing a wave 4, looking at the chart more than just ultra zoomed in we can see those appear previously:
On 1 hour the price is going ABC and ending with a strong red candle like some "capitulation" I think it can drop quickly a last time then reverse.
If the price on this 1 hour makes a double bottom or V shape bounce is not important and I don't look too much into it buyers are sellers are fighting on the daily chart,
this has nothing to do with day gambling as retail does not trade this pair AUDNZD still has 40 times more myfxbook positions than USDCNH, AUDNZD more relevant to the world economy according to retail :)
It just hits the eyes, clearly this is not part of the big 2020 downtrend where China was rearing a dumper truck full of usd and unloading.
What China FX reserves are made of is classified info, all I know is they are human and they are all the same, they are done selling for now (not contractual info), I'm sure they have some usd left at least a trillion, not in their best interest for the USD to go to zero (yet).
I don't know who the dumbasses buying the USD are, well there is me 🙂, but anyway there are always buyers;
Since this is now clear to everyone it is not just a little pullback in a downtrend it could continue for a little while.
When it went down it did following a clear trendline all the way down, now it is following a trendline on the way up.
A bit too simple... The chinese all too communist to make money in the exchange markets?
But Karl Marx loved the markets (probably due to a "I don't want to work if only I could make a lot of money on a luck streak" and gambler mentality).
Plus chinese government letting everyone know what they are doing in advance haha.
Maybe it's not "inefficient" as US regulators love to say, it's simply that in the absence of retail gamblers no one is stupid enough to go against the painfully obvious trend when the government announces what they are doing? How is sentence even a thing, how are these people so bad? 😆
Nah they're a tiny minority in FX they can't possibly have a significant impact, just bankers hate risks and love simple trendlines, and FX doesn't have that many speculators trying to extract money since 2008-2013. FX undervalued by now.
The USA are not part of the OBOR/BRI project. China not investing long term into the US, their future commercial mega-empire does not need them doesn't mean they don't need them NOW.
Idk not much more to say, the price here is at the risk point it could reverse from here so best cheapest place to take a buy, close to getting invalidated, maximum financial opportunity.