This is a longterm trade with a small position in USDCNH.
Why do I place this trade?
In China there are stockmarket and housing bubbles which are about to burst. In addition, we have huge debts throughout the economy which are running at 250% of GDP and economic growth is already falling (despite the Chinse giving a grwoth rate of 6.7% which clearly cannot be correct). In terms of exports, there now falling and there is simply not enough domestic demand to make up for the shortfall in exports.
I believe in long term China will devaluate their currency to make exports cheaper.
This kind of trade I usually like to run with 2 Targets and take 50% off when hit the first target.