Intraday Market Thoughts

Is CNH H&S Complete?

by Ashraf Laidi
Jan 9, 2023 20:49

On Dec 6th, I posted a chart of the USD/CNH (US dollar vs the Chinese offshore yuan), showing a striking Head & Shoulders formation. 33 days later, the H&S formation is 95-98% complete after USD fell against all major currencies. This also coincides with 10% drop in DXY from its highs. There's that "new" saw in FX about USDCNH or USDCNY becoming the new USDJPY. Regardless, 6.78 on USDCNH represents a nearly complete H&S formation. Does that mean USD has bottomed for now? Does its coincide with a USD recovery on Thursday's release of US CPI? Or, will we see a correction during the 1-2 days before CPI, followed by fresh declines. What does it portend for any coinciding technicals with gold and indices?   Here is that chart again Look where we were, and where we are now.   Several people are flying to London this week for my Private Event on Saturday at The Gherkin. Stay tuned.  


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