USDCNH: Weekly short setup, long the laggard
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USDCNH is a very interesting pair right now.
In this chart you can see a few instruments, pitted against each other.
Currently, talking currencies, the offshore yuan is lagging the group, compared to the other dollar pairs on chart, and it happens to have a weekly time at mode downtrend signal, which confirmed last week on close, which gives us targets of 6.37 and 6.28, with a possibility based on the monthly, of hitting 6.05 in the long term.
Keep a wide stop loss if you take this trade, I'd reccomend 1 to 3 ATR for the stop, and short at market.
As a sidenote, you can also see that Palladium and Copper are lagging the group. Now, this could mean that on a relative strength basis, the Yen, Canadian dollar and gold, are safer investments, but it also implies they have already moved a lot, and they might not have as much room up, compared to CNH, EUR, AUD, Copper or Palladium.
I'm willing to wager on the latter being true.
Keep risk reasonable, and good luck if you take this trade.
Cheers,
Ivan Labrie.
In this chart you can see a few instruments, pitted against each other.
Currently, talking currencies, the offshore yuan is lagging the group, compared to the other dollar pairs on chart, and it happens to have a weekly time at mode downtrend signal, which confirmed last week on close, which gives us targets of 6.37 and 6.28, with a possibility based on the monthly, of hitting 6.05 in the long term.
Keep a wide stop loss if you take this trade, I'd reccomend 1 to 3 ATR for the stop, and short at market.
As a sidenote, you can also see that Palladium and Copper are lagging the group. Now, this could mean that on a relative strength basis, the Yen, Canadian dollar and gold, are safer investments, but it also implies they have already moved a lot, and they might not have as much room up, compared to CNH, EUR, AUD, Copper or Palladium.
I'm willing to wager on the latter being true.
Keep risk reasonable, and good luck if you take this trade.
Cheers,
Ivan Labrie.
Nota
Good progress today.Nota
Back at resistance, monitor this one, might go sideways for a while.Ordine annullato
I'm flat for now, but there's strength in the other assets mentioned here. The pullback in CNH might favor reentry higher, let's wait for now.Nota
The rally to 6.5 was an excellent short.Trade attivo
Short working well.Cheers!
Trade chiuso manualmente
Got out earlier today. Looking to short a retest of the mode.Trade attivo
Reshorted earlier today.
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