The official currency in China is the renminbi often abbreviated to RMB, while the term Yuan can be used to describe the base unit of the Chinese currency. When trading onshore it is referred to as CNY, while offshore trading is known as CNH.
This supply and demand analysis is done on USDCNH Chinese Yuan offshore. We’ve been following this Forex cross pair closely for the last weeks. We’ve seen how weekly demand imbalances were created and respected over the last months in a clear big picture long term bullish trend.
The US dollar is very strong against Chinese Yuan offshore currency pair, reason why last two weekly demand imbalances around 6.91 and 6.87 have been respected. There is a brand-new imbalance slightly higher around 6.95 price level. Will this new imbalance be respected like the previous ones? We do not know but what we do know is that it’s a strong imbalance in a clear trend.
I’ve been reading that while receding risk of the coronavirus (COVID-19) in China seems to weigh on the pair, the recent surge in the US virus numbers keeps the buyers hopeful. It should, however, be noted that the market has remained less active due to the Easter Monday holidays in major economies, except in Japan and China.
We really should not care about COVID-19 or any news event, we know that there is a clear uptrend and also that demand imbalances is being created and respected. That’s all we need to know as Forex supply and demand traders.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand Forex trading course.
Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.