Baxia Markets
October 13, 2022

USDCNH is on a 6-day winning streak

upcoming events analysis top header

The United States will release a series of high-impact economic indicators related to inflation and the labor market during the trading session, which will bring high volatility to major Forex pairs. 


The US will release: Consumer Price Index, which is expected to increase from 296.171 to 296.43; a higher figure will be positive for the USD as it suggests high economic activity. They will also release the Inflation Rate YoY, which is expected to drop from 8.3% to 8.1%; higher inflation will be bullish for the USD but will negatively impact the US Stock market.


The US Initial Jobless Claims indicator is expected to increase from 219K to 225K for the first week of October, suggesting that the labor market is finally giving in; however, we have seen surprisingly good numbers for the US labor market in recent weeks.


Later in the trading session, China will release the Inflation Rate YoY, which is expected to increase from 2.5% to 2.8%; a higher rate will be positive for the Yuan exchange rate against other currencies.


China will also release the Balance of Trade for September; analysts anticipate an increase from $79.39B to $81B. China is a prominent exporter and has maintained a surplus since 1995; a higher figure than expected will be positive for the Yuan.


TW_Big Mover - Black AIG-Oct-12-2022-08-59-18-55-PM


USDCNH is on a six-day winning streak; the general trend continues to be upward as the pair is currently trading above the short and long-term moving averages. Our parabolic SAR indicator strengthens the long signals.


The Bollinger bands are still wide and moving upwards, which suggests there will be high volatility and that the pair will continue moving upwards; however, the bands are starting to shrink, which indicates that the pair might enter a consolidation phase in the medium term.


The relative strength index is at 64%, allowing the pair to continue climbing a bit before entering an overbought status. If this happens, there might be a temporary change in the market sentiment.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

forex, trading conditions, technical analysis, trading indicator, fundamental analysis

Subscribe by Email