Hi Traders,
The USDCNH, (the inverse of Chinese Yuan), now at 6.84, has reached the target area at 6.86-6.92 where it stopped and reversed the sharp rally started on March 27, at least temporarily.
ELLIOTT WAVES
The weekly and the daily charts show that the USDCNH has reached the target area (the blue horizontal lines) where it was expected to top.
However, this might not be the "big reverse" that the Elliott Wave people are waiting for. In fact, the wave count looks incomplete and it might not be final.
More exactly, this pattern seems to suggest that we reached the top of minor wave three (on the 4-hours and 1-hour chart) and the Yuan is probably unfolding minor wave four to the 6.77-6.76 area (see the targets in the weekly chart, blue horizontal lines)
The 4-hours chart shows a big reversal candlestick and the 1-hour chart shows that, although it could bounce back to 6.88, the Yuan is actually ready to resume the new downtrend.
Weekly chart. Click to enlarge
Daily chart. Click to enlarge
4-hours chart. Click to enlarge
1-hour chart. Click to enlarge
The USDCNH, (the inverse of Chinese Yuan), now at 6.84, has reached the target area at 6.86-6.92 where it stopped and reversed the sharp rally started on March 27, at least temporarily.
ELLIOTT WAVES
The weekly and the daily charts show that the USDCNH has reached the target area (the blue horizontal lines) where it was expected to top.
However, this might not be the "big reverse" that the Elliott Wave people are waiting for. In fact, the wave count looks incomplete and it might not be final.
More exactly, this pattern seems to suggest that we reached the top of minor wave three (on the 4-hours and 1-hour chart) and the Yuan is probably unfolding minor wave four to the 6.77-6.76 area (see the targets in the weekly chart, blue horizontal lines)
The 4-hours chart shows a big reversal candlestick and the 1-hour chart shows that, although it could bounce back to 6.88, the Yuan is actually ready to resume the new downtrend.
Weekly chart. Click to enlarge
Daily chart. Click to enlarge
4-hours chart. Click to enlarge
1-hour chart. Click to enlarge
