I find it useful to look at the big picture from time to time. In technical analysis terms, that usually means inspection of weekly and/or monthly charts. However, I rarely get to see analysis of "ultra-high" timeframe charts, so I decided to make a couple of attempts of my own. Previously, I analysed long term charts of the Euro, the Yen, the Cable, the Swissie, the Loonie, the Aussie and the Kiwi.
Today I'll have a look at yearly and quarterly Yuan* charts that are covering the period from 1971 to 2015. While the yearly may be of some use for a quick overview of price action, the quarterly chart offers more detail and makes trends, ranges and patterns more clearly visible. I will be focusing on the latter for my analysis.
*I use the term Yuan (capital letter) to denote USD/CNY pair. Though, the below charts are actually composed using both USD/CNY daily data (1971 - 2012) and USD/CNH tick data (2012 - 2015). Please see the "Onshore and Offshore Renminbi" paragraphs below for an explanation regarding both pairs.
Renminbi and yuan
Both terms are often used interchangeably to describe Chinese money but there is a distinc…