Deeper corrective recovery on USD/CNH can cause more risk-off

Gregor Horvat Wavetraders

USDCNH is usually a very good indicator for risk-on, risk-off flows because of China's link to the global economy. What we see on the pair below is an ongoing bearish trend that can resume after a wave four rally. Now, this wave 4 rally is still incomplete and can retest higher resistance, near 6.83. So for now there is room for some more risk-off and USD strength, while metals can see lower prices too untill wave c unfolds on USDCNH. However, risk-on can be mack when this wave four rally is finished.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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