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USD/CNY_TOD - USD/CNY

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USDCNY_TOD trade ideas

Chinese Yuan Has Completed The Bullish Setup To Move UpHey friends hope you are well and welcome to the new update from the forex market. The Chinese Yuan has completed the bullish setup and ready to move up against US Dollar. In today's article we will watch the different chart patterns and indicators that are giving signals for the bullish movement of an Chinese Yuan. A big falling wedge: On long term monthly chart the Chinese Yuan is moving in a falling wedg. And this is considered as a bullish reversal pattern among the traders community. As this is the long term monthly chart and signals and patterns are more firmed on long term charts, therefore there are more chances that it will follow the bullish reversal behavior of falling wedge. At this time the price line of Yuan is at the resistance of wedge. But this time it will be difficult for the priceline to drop up to the support of this wedge. Later this article you will see that strong reasons why the Chinese Yuan will not reach at the support. Down channel and synchronized movement with indicators and EMAs: On weekly chart the priceline can be seen moving within a down channel and the movement within this channel is very much synchronized with the stochastic and Momentum indicators. If you take a closer look at the chart then you will notice that whenever the price line reaches and the support and the stochastic gives bull cross and momentum starts turning bullish then price action takes bullish divergence and reaches up to the resistance of the channel. But this time the priceline of Yuan is almost at the center of the channel and Stochastic has entered in over sold zone and has given bull cross. And the momentum indicator is also changed from strong bearish to weak bearish. Therefore there are more chances that the price action will not move more down to reach the support of the channel. And if the Chinese Yuan will be moved up from here then the exponential moving average 10 can also cross up EMA 21 and this bull cross between the two exponential moving averages can lift the price action more up that can lead to the breakout from this channel. A double bottom formation is cancelling the bearish move of Head & Shoulder: On the weekly chart the price action has formed a Head and Shoulder pattern.The formation of this pattern was started from the September 2019. Now the priceline has crossed down the neckline of the shoulder and reached at $0.1395 support. Now the price action is likely to form a double bottom formation that can cancel the bearish rally that was started due to this H & S pattern. A harmonic BAT formation: On the same weekly chart the price action of Chinese Yuan has completed the formation of bullish BAT and entered in the potential reversal zone. Now we have seen that the different indicators on the weekly chart has given bullish signals and after formation of Head and Shoulder the priceline is likely to form a double bottom for bullish reversal and finally the price action has also formed a harmonic BAT pattern. And at this time it is in PRZ level. Therefore All indicators and patterns are giving strong signal that Chinese Yuan has completed the setup for bullish reversal. And it can start the bullish rally at any time. Conclusion: On the long term signals and patterns are in favor of bulls rather in favor of bears, however the stop loss is must. In this trade we can set the maximum extent of the potential reversal zone as our stop loss.
Long
by moon333
1
USDCNY Bearish SetupPrice 7.1418 swings to 7.0642 for 7.0287 - all three working with 7.1128...Momentum will be good observed here, -perhaps a stochastic. Open day will tell and if price reverses and bulls break above dsl, then, this set-up will be invalid. I rest, take care. All our market shared technical set-ups are speculative, they are not guaranteed for accuracy or completeness in form of any content. At this profile page, the analysis, ideas and also, the strategy of a chart belongs to Charts34T ; - it is not a market advice. You are both responsible and liable for your own account.
Short
by UnknownUnicorn146071
USD/CNY Analysis on 4H TF, a reversal is comingHi Traders and Investors, Please find above my vision for USD/CNY for the coming days, the price is about to finish the bullish move, at 7.15, it will reverse and go back down, the price action is showing a weekness of bulls who can not make a higher high anymore and the last higher low has taken over the previous one so it's a sign of a reversal as well. Feel free to comment and share your point of view, Follow me for more daily analysis in all kinds of markets.
Short
by elidrissidriss1
Exponential Global Currency ComparisonThis is a Exponential Global Currency Graph Comparison (with a focus on India and China) These are all the "major" world currencies going back to about the early 1980's for the larger "population" countries and also a few of the more interesting places like Brazil, Egypt, Turkey, Russia, Philippines, Australia, Japan, and Mexico and more typical larger population areas like the "Euro" and (India and China). Its interesting to point out that just about all the worlds currencies have had about a -400% decrees in value of the $USD over the past 40 years or since the early 1980's. If you look at the "log" or "exponential graph" you can see clearly that the exchange rates for the $1 USD to "any other major world currency". The "typical" exchange rate is about 7 to $1 up to about 100 to $1 with a more typical range for "developing or poor" countries being around 25 to $1 to 100 to $1. And most of the others being 7 to $1 or 5 to $1. This may all change soon? This suggest that you can typically get about 4x of any other major world currency for $1 USD over this 40 year period going back to the 1980's. This will likely change!
by idasuperman
4
USDCNY, Sell SetupDisclaimer!!! the content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. Traders!! if you like my ideas and do take the same trade like i do, please write it in comment so we can manage the trade together. every trade must comply with money management, and the risk does not exceed 2% of the capital. ___________________________________________________________________________________________________________________________________________ Thank you for your support ;) Jonny
Short
by JonnyTjong
The Future Stability of Asian Currency (Central Exchange Rate)The Future of Asian Currency is very important and the Exchange Rate Stability with the United States Dollar. This "currency map" includes all the major currencies in Asia. The currency in Asia can be understood by 3 financial groupings, 10 to 1, 100 to 1, and 1000+ to 1. Here are the groupings without specific finical exchange (numbers) details. 10 to 1 with $USD: SGD: Singapore Dollar MYR: Malaysian Ringgit CNY: Chinese Yuan Renminbi HKD: Hong Kong Dollar 100 to 1 with $USD: TWD: New Taiwan Dollar THB: Thai Baht PHP: Philippine Peso INR: Indian Rupee BDT: Bangladeshi Raka JPY: Japanese Yen PKR: Pakistani Pupee 1000 to 1 with $USD: MMK: Burmese Kyat KHR: Cambodian Riel LAK: Lao Kip IDR: Indonesian Rupiah VDN: Viet Nam Dong The exchange rate "regime" is very complex in Asia perhaps a lot like the European Union's "pre euro" times? China is becoming the central monetary authority of the Far Far East in terms of "mainland non-island wealth". While most of the cultural and complex wealth remains outside of China or South of China in more "exotic currency" locations. The natural stability of a "valuable" currency typically benefits unions of currency in relation to other currencies of less value on the foreign exchange market. Devaluation is sometimes seen by overlooking currencies and making it difficult to "visualize" what something is worth from day to day or even over a 10 year timeframe some currencies have changed by a factor of 10x or almost 100 times. When a country prints more money "un-respectfully to stability" (local or regional or globally). In Asia we also see signs of "artificial" weakening of currency by forcing a currency to "stay at 1000 to 1" or directly link with the $USD when the currency is not 1 to 1 and instead forcing the currency to "float" at 1000 to 1 levels not 1 to 1 levels (1 to 1 may better benefiting global financial stability). The other major problem in Asia is the ability to have technology to "physically print" quality artistic and culturally significant modern holographic money. Rather then linking their currency with the dollar and risking long term dependence on foreign wealth many asian counties have figure out that it maybe wiser to link currently with neighbors in a "sustainable" localized inflation rather then linking "very very distant countries with problems". The problems with the USD can also be when a country "links" their currency with the USD and cause instability from across the sea. What I noticed as a solution is between India, Pakistan, and Bangladesh is that they have tried to have different currencies but make it "easier on their local people" by keeping the currencies "values similarly" even if they are not directly related to the $USD. So what costs say 80 in one country would cost "about 80 in the bordering counties". Its important to realize that the "total value" of the world economy maybe "limited" in a "safer way" by having globalized currency stability. The total GDP today of the World on Earth is about 141,859,625 million or about $141.8 trillion dollars? Its likely that even the local stock markets show very little value in terms of "public" support. For example very few stock exchanges provide "free live real time quotes". It maybe that stocks and money both will need to be revalued globally on earth and its likely that using numbers only up to 5 or 10 maybe smartest? Hope this helps everyone! :)
by idasuperman
1
History of the Indian Rupee (from the 1980's to 2020)The History of the Indian Rupee from the 1980's to 2020. This graph is relative with the other major world currencies with "yellow" indicator lines for major (historical start date) problems in the History of the Indian Currency going back to the 1980's. The Indian Rupee is has a market-determined exchange rate. However, the RBI trades actively in the USD/INR currency market to impact effective exchange rates. Thus, the currency regime in place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate. This is sometimes called a "managed float". Other rates (such as the EUR/INR and INR/JPY) have the volatility typical of floating exchange rates, and often create persistent arbitrage opportunities against the RBI (if the USD is not stable) Note: China is the light blue graph in this study.
by idasuperman
Chinese Yuan Is Going To Beat US Dollar Very HardStrong bullish rally and retracement at golden ratio: The Chinese Yuan has been moving up with a strong bullish rally since June 2007 to January 2014 that is almost seven years that the Yuan has been moving up against the US dollars. Then from January 2014 to January 2017 the Chinese Yuan moved down and retraced at 0.618 Fibonacci level that is the golden ratio therefore there were strong chances that it will again move up from this golden ratio and as per expectations the Chinese Yuan moved up again and took another powerful bullish divergence from January 2017 to March 2018 and this move was upto 11.48% for more than a year. Then from March 2018 the Chinese Yuan again started moving down against the US Dollar and at this time it is again at the same golden ratio of 0.618 Fibonacci level . Down channel and volume profile and other indicators: If we switch to the weekly chart then it can be clearly observed that from August 2018 the priceline of Chinese Yuan is now moving in a down channel. After August 2018 the price line has hit at the support of the channel on September 2019. Even though this time after hitting the resistance of the down channel the price action of Yuan is moving down but we can expect that this time the priceline will not reach the support of the channel. If we examine the price action of Yuan then in August 2018 we had the bollinger bands at the support of the channel. And when in Sep 2019 the price action was hitting for the second time on the support the channel at that time the bollinger bands was again at the support of the channel. But this time the Bollinger bands is above the support of this channel and there is a big distance between the support and the lower bands of the bollinger bands. Therefor this time the bollinger bands can play the role of biggest hurdle to stop the price action to move down up to the support of the channel. Here I have also placed the volume profile on the complete price action moving within this channel and after placing the volume profile it can be clearly seen that the trader’s interest is very low below the $0.14. That is almost the same level where we have the lower bands of the Bollinger bands. And the point of control of the volume profile is at $0.1450 that is above the resistance of the channel. Therefore there are strong chances that the price action can move up at anytime at least up to the POC level of the volume profile. Because the point of control of the volume profile always works as a center of gravity for the priceline and whenever the candlesticks move up move down it always pulls back the price action towards itself. And if we see the behavior of the priceline since August 2018 up till now then it can be clearly seen whenever the price action moved up or moved down then it always moves back to the POC level. Here I have also placed the stochastic and momentum indicators. And after placing these indicators we can observe that these both indicators are working in very synchronized manner with Bollinger bands. Whenever the price action hits the Bollinger bands support and stochastic and momentum both give the bull signals together then the priceline moves up to hit the resistance of the channel. Once it was happened on the candlestick of 27th August 2018 and after that the second time it was happened on the candlestick of 9th September 2019. At this time we can see the stochastic is again very close to the oversold zone and momentum is also bearish. Therefore I am again waiting bullish signals from these two indicators for the next bullish rally. Bullish harmonic BAT signal: The strongest bullish signal that I have received is that the price line of Chinese Yuan has completed a bullish BAT harmonic pattern on weekly chart. the formation of this harmonic move was started with the candlestick that was opened and closed on 2nd September 2019. And 1st leg was completed on the candlestick that was opened and closed on 28 January 2020. Then the priceline has been retraced upto 0.50 Fibonacci retracement level this was the first confirmation of the bullish BAT harmonic pattern. After this move we needed the Fibonacci projection between 0.382 to 0.886 Fib projection area of A to B leg and we can see that from 17th September 2020 to 9th March 2020 Chinese Yuan projected between this projection level that was the second confirmation for the bullish harmonic BAT pattern. And finally the priceline is again dropped down and retraced upto 0.786 to 0.886 Fibonacci level and this is a final confirmation of completion of bullish BAT pattern. Now at this time the price action is moving in the potential reversal zone of this bullish BAT and at anytime the price action of Chinese Yuan can move up with a powerful bullish divergence. And as per Fibonacci sequence of sequence if BAT pattern it can be project between 0.382 to 0.786 Fib projection level of A to D leg. Conclusion: We can expect buying zone from $ 0.1407 to $ 0.14 because at $0.14 we have strong supports. And realistically sell target can be from $ 0.1423 to $ 0.1448. If the Chinese Yuan will breakout the channel then we can even expect more powerful bullish rally against US Dollar for years.
Long
by moon333
3