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Friday, 28 September 2018

SGDCNY (Singapore Dollar against the Chinese Yuan): 28 September 2018, Friday, 12.32pm Singapore Time

SGDCNY (Singapore Dollar against the Chinese Yuan): 
28 September 2018, Friday, 12.32pm Singapore Time
(Click on Technical Chart above to Expand)

Attached is the Technicals for the Singapore Dollar against the Chinese Yuan (China Renminbi). The SGDCNY has completed its large accumulation of bullish cup-and-handle guided by the red trendlines. The breakout has been achieved. This gives a projection upwards of 5000 pips. Another round of sharp Chinese Currency depreciation/devaluation is coming since the SGD has been relatively stable against the basket of the other 8 major currencies of the world. The real reason for the trade war could be becoming clear. US is winning the trade war, inflicting such volatility in the Chinese Yuan, and with Chinese Yuan needing to keep depreciating to jump-start the economy. China's fragility is exposed nakedly. There is right now a loss of confidence in Chinese Yuan among the international finance community. China's dream of settlement of Crude Oil using Chinese Yuan in the Chinese Exchange has been shattered to pieces by the on-going trade war. It looks like any future attempt to try to displace the USD will result in more trade wars. US Dollar would likely remain the undisputed international currency of settlement, as well as the benchmark, for some time or a long time.


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