While USDCNH is inviting a discounted level on the 4H chart, I am bearish on the yearly view suggesting a long-term double top has been confirmed further.

As a result, my August 21 short trade plan has exited in profit after holding for 8 hours and 21 hours:

https://www.finlogix.com/analysis/20240821/usdcnh-intraday-analysis-and-trading-plan-for-august-21-2024

A new overall record of 1 win and 2 losses.

The US is set to have 1 remaining high-impact economic report tonight while one for China on Saturday.

Re-assessing USDCNH’s high timeframe candles:

Yearly Candle: Last check is a Green Semi Gravestone Doji now a Red Inverted Hammer

Monthly Candle: Still a Red Body since last check but with a Longer Head Wick

Weekly Candle: Previous close is a Red Body with a Longer Head Wick current is a Red Long Upper Shadow with a Big Body

Daily Candle: Previous close is a Red Body with a Longer Tail Wick current is Red Spinning Top

It is important to track where USDCNH may head next.

There’s an uptick in the US’ prelim GDP quarter-on-quarter basis as well weaker Unemployment Claims resulting in a DXY bounce off but not for the USDCNH directly.

But my prediction for tomorrow’s Chinese Manufacturing PMI will be stronger data that will help CNH to rally against the US dollar.

I’m still referencing the swing low to high moves from the previous up wave last May 3 to July 3 as the retracement points of view, especially the bearish extension levels.

The recent sell-off this week was the PoD from a descending triangle pattern which caused a new lower low and a potential deeper down wave.

While the current 4H candle is weak, rejecting the 7.0830 level, I am going to short it.

Sounds a bit off knowing that USDCNH is already oversold but I’m looking at the long-term trend now that the yearly has confirmed a double-top pattern.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top-tier banks via ACY Connect.

If right, I am going to be rewarded for shorting USDCNH again.

All trade ideas I share are my views and for my trades only.

USDCNH Intraday Analysis and Trading Plan for August 30, 2024

Aug 30 2024

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