CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Three trades to watch (USD/CNH, Nikkei 225, China A50)

Article By: ,  Market Analyst
August 18, 2022 12:14 AM

View related analysis:

China producer prices continue to fall - China A50 set to rally?

Could the PBOC allow USD/CNH to head for 7.000?

USD/CNH 1-hour chart:

We outlined a bullish case for USD/CNH on Tuesday and for its potential to rise to 7.000. Whilst the US dollar was stronger overnight, a potential inverted head and shoulders pattern has formed on the 1-hour chart. A break above 6.8010 confirms the bullish reversal pattern and projects a target around 6.8260. The bias remains for a bullish breakout whilst prices remain above the 6.7848 low, but we’d need to see a break beneath the 6.7755 low before switching to a bearish bias as this invalidates the current corrective low.

  

 Nikkei 224 Daily Chart:

The Nikkei is trading at its highest level since January, but there are signs it wants to mean revert as part of a retracement. A bearish hammer formed on the daily chart below 29,382 resistance. We have seen four consecutive closes above the keltner channel and yesterday’s hammer warns of trend exhaustion.  The RSI 14 is overbought, and the RSI 2 has moved lower from its overbought zone. The 28,398 – 28,635 zone is a potential area of interest for bears, or bulls can wait for evidence of a swing low in this area before reconsidering longs.

  

China A50 Daily Chart:

A bullish outside day formed on the China A50 which suggests 13,544 could be a swing low. We’re still looking for prices to rise to the 14,000 / 14.135 after the market broke above the bearish trendline last Thursday. From here we would like to seek evidence of an intraday swing low above 13,544 or wait for a break of yesterday’s high to assume bullish continuation.

 

 

 

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024