Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China’s efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence. While China’s fixed-asset and private-sector investments have shown some decline, there is robust investment activity in key areas. Foreign investments increasingly focus on high-tech sectors, aligning with China’s emphasis on emerging industries. China’s investment strategy prioritizes quality and reasonable growth over quantity expansion, with policies supporting this approach.
USDCNH – D1 Timeframe
The Daily timeframe of USDCNH, as seen in the chart, shows that the price has reacted initially from the support trendline of the wedge pattern and may very well be continuing its bullish rally from here. Considering the presence of the 50-day moving average as an additional support, the rally-base-rally demand zone, and the bullish array of the moving averages, I am quite optimistic about a bullish sentiment.
Analyst’s Expectations:
- Direction: Bullish
- Target: 7.33086
- Invalidation: 7.21807
HK50 – D1 Timeframe
HK50 as seen in the chart image seems to be trading inside a descending channel, with the most recent move being a touch of the trendline support. The trendline also overlaps with a drop-base-rally demand zone, which serves as a further confluence for bullish sentiment.
Analyst’s Expectations:
- Direction: Bullish
- Target: 18595.26
- Invalidation: 17494.04
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
