The renminbi (RMB) is the official name of China's currency. The principal unit of RMB is called the Chinese yuan. The yuan has been under pressure and is retesting its low levels of 2019 and 2020, so let's look at a chart or two.
In the daily Japanese candlestick chart of the yuan (external), below, we can see that prices slid in April-May and then again in August-September. The 12-day price momentum study got fairly extended and prices steadied without a bullish divergence.
In the August-September price decline the pace of the fall was not as fast and the 12-day price momentum is showing a tiny bullish divergence.
In the weekly Japanese candlestick chart of the yuan, below, we can see that prices are retesting the lows of 2019 and 2020. The weekly slow stochastic indicator in the lower panel is very oversold but that has not translated into a rally.
The 12-week price momentum study shows a higher low from May to September suggesting that the pace of the decline is slowing. This is a bullish divergence but note that it took a much longer bullish divergence from 2018 to 2020 before the yuan rallied. Just saying.
Bottom-line strategy: I am no expert by any means in the world of currencies but just a technician making observations. One of things you might put on your checklist before the start of trading each day is the movement of the yuan.
