{"id":11389,"date":"2018-09-25T07:30:09","date_gmt":"2018-09-25T11:30:09","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=11389"},"modified":"2018-09-25T07:30:09","modified_gmt":"2018-09-25T11:30:09","slug":"expect-a-big-move-in-this-currency-soon","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/expect-a-big-move-in-this-currency-soon\/","title":{"rendered":"Expect a Big Move in This Currency Soon"},"content":{"rendered":"

China’s stock market isn’t the only thing bottoming<\/a> in the “People’s Republic.” The currency looks to be hitting a bottom as well.<\/p>\n

The Chinese yuan and the U.S. dollar often run in different directions. As the dollar rallies, the yuan falls – and vice versa.<\/p>\n

The U.S. dollar bottomed in April and then went on a blistering four-month-long rally that peaked last month. By contrast, the yuan peaked in April and then spent the whole summer diving off of a cliff.<\/p>\n

But, it looks like that trend is about to change.<\/p>\n

Regular readers know we’ve been looking for a top in the U.S. dollar<\/a> for the past several weeks. It seems that we may now be finally getting what we were looking for.<\/p>\n

Here’s an updated look at the U.S. Dollar Index (USD)…<\/p>\n

\"\"<\/p>\n

After peaking above 96 in August, USD has endured a series of lower highs and lower lows. The dollar has also broken below the support of its 50-day moving average<\/a> (MA) line – which shifts the intermediate-term trend to bearish. Now, all of the various moving averages are in a bearish configuration – the 9-day exponential moving average<\/a> (EMA) is below the 20-day EMA, which is below the 50-day MA.<\/p>\n

The last time the chart of the dollar looked like this was back in December<\/a>, just before the buck dropped 6%.<\/p>\n

Now, let’s look at the yuan. Here’s a chart of the WisdomTree Chinese Yuan Strategy Fund (CYB), which tracks the action in the currency…<\/p>\n

\"\"<\/p>\n

CYB hasn’t been able to break above the resistance of its 50-day MA line yet. It also hasn’t formed a series of higher highs and higher lows – which would signal a new uptrend is in place.<\/p>\n

But all of the moving averages are coiling together. Energy is building for a big move.<\/p>\n

The last time the CYB chart looked this way was back in late November\/early December, just before the dollar nosedived. CYB responded by rallying 8% in about six weeks.<\/p>\n

We just might be on the cusp of a similar move today.<\/p>\n

If the decline in the dollar starts to accelerate, then look for the yuan to press higher from here.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

P.S.<\/strong> A lot of folks have written to me in the past year, saying the Market Minute<\/em> is the best free trading resource out there.<\/p>\n

But what you might not know is that my Delta Report<\/em> service takes it one step further… with specific, actionable advice that helps you make money no matter what the market does.<\/p>\n

If you want to learn the best way to profit on any kind of market move – and hear the story of how I learned to do it – click here<\/a>…<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Do you think the dollar is about to fall off a cliff? How are you prepping your portfolio?<\/p>\n

Let us know – along with any other trading stories, questions, or suggestions – right here<\/a>…<\/p>\n","protected":false},"excerpt":{"rendered":"

Many signs point to a big upside move in this currency…<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-11389","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/11389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=11389"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/11389\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=11389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=11389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=11389"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=11389"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=11389"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=11389"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=11389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}