Bottom Fishing Opportunity: CAD/CNH Pair Signals Potential Rebound

Amidst China’s prolonged economic slump due to the impact of COVID-19, the offshore Yuan (CNH) has experienced significant depreciation against the Canadian Dollar (CAD), creating an enticing bottom-fishing opportunity for investors and traders. From a technical perspective, the pair has already reached the 261.8% extension level, followed by a pullback and lower highs, with short and long-term moving averages diverging. The initial target is set at the pivot level of 5.41, and from there, the market will determine whether a bounce or further decline is in store. As China seeks to recover from its economic challenges, it’s crucial to monitor this pair closely for potential trading opportunities.