08 Dec
USDCNH forex cross-pair is tanking as expected after reaching the strong supply imbalance on the daily timeframe. USDCHN price has reacted strongly to the price level, and the Chinese Yuan price is getting stronger against the US dollar.
The USDCNH price chart attached below is a screenshot taken from the cross-pair last November 29th 2022, when the imbalance was reached.
USDCNH is trending down on the daily timeframe right now. Almost two weeks later, on the 8th of December 2022, we can see that USDCNH got much stronger after the reaction to the imbalance. There is a brand-new daily supply level overhead located at 7.19. Will the Chinese Yuan cross-pair pull back to the imbalance in a downtrend? Waiting.
USDCNH supply and demand technical analysis
As supply and demand traders, we do not need to pay attention to Forex’s fundamental analysis. You should not worry about fundamentals unless you are doing very short-term trading and scalping.
Trading is just waiting for the right trigger points and scenarios to present themselves, this game has a name, and it’s called the waiting game. We must patiently wait for the correct scenarios and setups to happen and for the price to pull back or dip into the price levels we want to trade. These price levels are made of supply and demand imbalances in our case. You can use these imbalances to plan your trades in lower timeframes.
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