Chinese Yuan (CN¥) ⇨ US Dollar ($) (CNYUSD) Falls

Chinese Yuan (CN¥) ⇨ US Dollar ($) (CNYUSD) Falls

Chinese Yuan (CN¥) ⇨ US Dollar ($) (CNYUSD) Falls

China’s yuan firmed against the U.S. dollar on Wednesday after the central bank fixed its daily midpoint at the strongest level in three months, but the renminbi slid to new lows against currencies in a trade-weighted basket.

official midpoint CNY=PBOC at 6.8635 per dollar prior to the market open on Wednesday

The current market condition for FOREX CNY= is:

Mildly Bullish

The close is currently Above it’s 200 period moving average.
The close is currently Below it’s 90 period moving average.
The close is currently Below it’s 30 period moving average.

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 6.89.

The projected upper bound is: 6.90.

The projected lower bound is: 6.86.

The projected closing price is: 6.88.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 20 white candles and 27 black candles for a net of 7 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 3.0132. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 37.54. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 98 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -165.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX CNY= closed down -0.007 at 6.877. Volume was 12% above average (neutral) and Bollinger Bands were 44% narrower than normal.

Open     High     Low     Close     Volume
6.884    6.892    6.877   6.877     2,074

Technical Outlook
Short Term:                Oversold
Intermediate Term:  Bullish
Long Term:                 Bullish

Moving Averages:  10-period     50-period    200-period
Close:                        6.90               6.89             6.83
Volatility:                 1                     2                    3
Volume:                   1,673              2,274            2,160

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX CNY= is currently 0.7% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of CNY= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CNY= and have had this outlook for the last 11 periods.

The following two tabs change content below.
Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

Latest posts by Shayne Heffernan (see all)

Leave a Reply

Your email address will not be published.


By submitting this form, you are granting: heffx, 3 Raffles Place, Singapore, 048617, permission to email you. You may unsubscribe via the link found at the bottom of every email. (See our Email Privacy Policy (http://constantcontact.com/legal/privacy-statement) for details.) Emails are serviced by Constant Contact.