Technical analytics

USDCNY market technical outlook

Daily chart:

Bulls are poised to break pivot-level 7.0666 to the upside on the back of strong pressure of ADX indicator, that probably will drive to break towards 7.1494.

H4-chart:

Local picture is identical: full domination of bulls and trending readings of ADX. Slight consolidation forms at the tip of the structure, which can quite turn a “bullish flag”. This will hold the quotes for a while at current levels, but eventually will lead to a stronger momentum.

 

H1-chart:

On hourly chart currency pair accumulates potential inside upper Bollinger bands, that may allow traders to get better entry points at the area of middle band (7.0563). Upper Bollinger band will resist today (7.0767).

Expectations:

Main scenario: Break above 7.0767 and further growth in direction 7.1000 and 7.1494 (in medium term).

Alternative scenario: Flat in the 7.0563-7.0767 range.

Trading recommendations:

Longs from 7.0563.

 

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