FxWirePro Call Review: Short term sell USD/CNH targeting 6.28 per USD

In early April, in an article, here, https://www.econotimes.com/FxWirePro-Short-term-rebound-likely-in-USD-CNH-broad-trend-still-bearish-1240088 we suggested the possibility of a short-term rebound in USD/CNH exchange rate from the then current rate of 6.31 per USD. Here is a part of that piece,

“Our calculations suggest that the Chinese Yuan, which has been showing remarkable strength since 2017, may face a bounce back which could push the yuan to as low as 6.4 per dollar before the board bullish trend resumes again. The calculations also suggest that the buyers are likely to start emerging one the exchange rate reaches 6.36 area.”

As suspected, the Chinese yuan weakened to as low as 6.38 per USD and currently trading at 6.36 per USD. Our calculations suggest that the short-term rebound in the USD/CNH is over, which represents short-term selling opportunity even if the broader bull trend in the Chinese yuan doesn’t resume.

Trade idea:

Sell USD/CNH at the current rate of 6.362  with a target of 6.28 and a stop loss around 6.385.