Yuan's been devaluing since the trade war escalated and it's been under heavy pressure on exporting.
China's has been calling to defend 7 for the last couple years, but they barely had that calls for this year. Even though it was a joke to call China a non-currency manipulator.
Here's my bold prediction:
1. China will strictly tighten their currency flow, way tighter than it even had before.
2. They'll keep CNY and CNH apart from each other.
3. 7 is just a psychological number, if they are trying hard to defend their export, 7 or maybe 8 is totally acceptable for their economy.
4. DXY is still strong even though Trump trying so hard to hammer it down.
5. The most likely pattern it shows is Cup & Handle pattern, on weekly and monthly chart.
6. Trade war will eventually ends with a 'deal', it's just both two nut heads won't claim the 'loss' on their media.
China's has been calling to defend 7 for the last couple years, but they barely had that calls for this year. Even though it was a joke to call China a non-currency manipulator.
Here's my bold prediction:
1. China will strictly tighten their currency flow, way tighter than it even had before.
2. They'll keep CNY and CNH apart from each other.
3. 7 is just a psychological number, if they are trying hard to defend their export, 7 or maybe 8 is totally acceptable for their economy.
4. DXY is still strong even though Trump trying so hard to hammer it down.
5. The most likely pattern it shows is Cup & Handle pattern, on weekly and monthly chart.
6. Trade war will eventually ends with a 'deal', it's just both two nut heads won't claim the 'loss' on their media.
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'7' Breaks