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Follow on Google News | Why the Chinese Yuan is Still AttractiveBy: FX Trading Desk The Yuan is the world's fifth most used currency worldwide, after the U.S. Dollar, the Euro, the British Pound and the Japanese Yen. Irrespective of any devaluation, China's volume of international trade cannot be discounted. Because of its dominance, the U.S. Dollar is also the most predictable and a USD/CNY pair makes for an unbeatable combination. So is the yuan going to rise or fall further? A technical analysis of the USD/CNY graph post-devaluation yields the answer. FX Trading Desk offers a Forex trading course that teaches you the finer nuances of making money, such as harmonic trading. Harmonic trading relies on the fact that trading patterns tend to repeat themselves. The USD/CNY graph is no exception and you can see at three places where it looks similar. A closer examination reveals that all these happened at the end of a month/beginning of the next month. Knowing what is going to happen next is what can make you money for sure. In the USD/CNY price history graph, you can see how a steep fall that follows a spike is succeeded by a lull, before rising again, albeit slowly, only for the pattern to repeat itself all over again. So if you are a trader on the Forex market and witness this pattern at the end/beginning of a month and the price remains unchanged for a few days, that is when you can sell the Yuan and buy it after a few days when it starts to climb. This is known as price action trading or making a trade based on the price of the currency, and also covered in the Forex trading course offered by FX Trading Desk. How much do you stand to make? Let us say your trading capital is $10,000. If your broker offers you a leverage of 100:1, that means you could trade a million dollars’ worth of Chinese Yuan. A 0.01 difference in price translates into a profit of $1,500, which isn't a bad amount to make in a month. Even if the market swings the wrong way, all you need to do is hold on and wait until it reaches your target price. FX Trading Desk's course also teaches you how to estimate your targets right and also discipline - panicking is one of the reasons why many lose money in the Forex market. About FX Trading Desk Started by Yudha Putra, a master securities trader and an MBA graduate who specializes in asset classes like equities and currency and has experience trading the Euro, British Pound and Singapore Dollar, FX Trading Desk offers online lessons that focus on how technical analysis can help you make money on the Forex market. Get more information on http://www.fx- End
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