Yuan Tracks Former Resistance, Volmageddon When?

Sometimes this happens: a security breaks a trendline, but then keeps following it for a time. USDCNY is moving in a bearish direction, but I still expect a reversal because the Chinese economy cannot handle a strong yuan.

For myself, I closed my long USDCNH futures about a week ago and bought FXI puts instead. FXI has drifted below support. I plan on going back into CNH, but they may hold off on letting it fall until after the Olympics. I expect yuan depreciation will be part of a market panic though, because I expect a new leg higher in DXY when that unfolds.

BTC is also retesting a minor short-term line.