USDCNY | Wave analysis of the ticker

On April 2 we looked at the wave “2” of the dollar/yuan pair (https://t.me/eightyninewaves/3483). And now its structure is completely fulfilled, may be it’s time for yuan for a very significant strengthening against the dollar.

I would bet on it only when the red channel will be broken down at about 6.9. This level could open the way to 6 in the medium term.

#USDCNY. If the count is correct, we are about to see a big strengthening of the yuan against the dollar. I’ll describe the details later.

I wrote to you a month ago about the strengthening of yuan against the dollar (https://t.me/eightyninewaves/3403). So far so good, but the structure on small degrees made me question the count – the fall is in the form of a zigzag after the blue wave “2”.

That means the continuation of that very wave into the area of blue fibo levels and its complication to a double zigzag is likely. And further, the trend of American dollar’s weakening, started at the end of the last year, will continue with the wave “3”.

#USDCNY. A continuation of the wave “2”? I wrote to you a month ago about the strengthening of yuan against the dollar (https://t.me/eightyninewaves/3403). So far so good, but the structure on small degrees made me question the count – the fall is in the form of a zigzag after the blue wave “2”. That means the continuation of that very wave into the area of blue fibo levels and its complication to a double zigzag is likely. And further, the trend of American dollar’s weakening, started at the end of the last year, will continue with the wave “3”.

At the beginning of January I showed you the markup with the wave (1) as part of [5] (https://t.me/eightyninewaves/3274). At that time the wave “1” has completed there, and now the wave “2” has fulfilled the minimum rules for its completion. This hypothesis will be confirmed by a breakdown of the green level.

If the pair breaks down the 6.7 yuan per dollar, I will recommend to partly transfer the funds for savings into the Chinese currency, and to wait for the 5.9 area.

#USDCNY. USD collapse? At the beginning of January I showed you the markup with the wave (1) as part of [5] (https://t.me/eightyninewaves/3274). At that time the wave “1” has completed there, and now the wave “2” has fulfilled the minimum rules for its completion. This hypothesis will be confirmed by a breakdown of the green level. If the pair breaks down the 6.7 yuan per dollar, I will recommend to partly transfer the funds for savings into the Chinese currency, and to wait for the 5.9 area.

The forecast that will probably come true not in 10 years, but this year, the yuan will begin to become the world’s currency. Currently it only accounts for a few percent of world trade, but it will account for tens of percent.

In this scenario China must stop devaluing the currency to please its exporters and overseas partners. Create an infrastructure parallel to the SWIFT system. I assume that this will be a digital yuan for international transactions. Whether there will be a correlation with the current fully fiat yuan – I can’t say yet.

In the March update, I wrote that China is not ready yet for a confrontation with the United States (https://t.me/eightyninewaves/2767). Further, I quote a post dated March 11: “China will not stand up for the Russian Federation, limiting itself to hybrid support. In the conflict in Ukraine, they do not want to prove themselves as a side, they will simply watch what can happen to them when they tries to go to Taiwan. America believes that seeing the horror of what is happening, they will retreat.”

The Chinese began to lose confidence in the authorities. Analysts attribute this to the irremovability of power and the most stringent covid restrictions in the world. Elliott analyst, on the other hand, looks to the root and sees that the weakness of foreign policy is due to local negative sentiment. And the fluffy China trend is coming to an end – in the near future the world will see its teeth.

There is an opinion that Russia is in conflict with America on the territory of Ukraine. But this opinion, with a detailed study of the problem, does not correspond to reality. If you try to rise above the situation, then the two largest economies in the world are involved in the confrontation: the United States and China. Their confrontation unfolds in peripheral territories, so empires fight for supremacy in the world-system, by proxy and at someone else’s expense, supporting their satellites at critical moments.

The media are actively discussing how Russia is going into China’s open arms – American capital has liberated the domestic market, and now Chinese capital can enter almost any sector of the economy as a monopoly. Monopoly cannot be good, monopoly is not meant to save anyone, monopoly leaves scorched earth in its wake. In fact, Russia was given to the Chinese capitalists to be torn to pieces. Unless, of course, they disdain toxic sanctions assets.

#CNYRUB #CNY TF: 1W But, most likely, they will not disdain :o)

And if you look at the chart of the yuan against the ruble, then it repeats the dollar/ruble chart by 96%, which means that China will not stand up for the Russian Federation, limiting itself to hybrid support. In the conflict in Ukraine, it does not want to show itself as any side, it will simply watch what can happen to it when it tries to poke its nose into Taiwan. America believes that seeing the horror of what is happening, it will retreat. We’ll see…

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#CNYRUB #CNY TF: 1W