Technical analytics

USDCNY market technical outlook

Daily chart:

The pair retains tendency for flat at the area of middle Bollinger band (6.882), where supposedly a potential is accumulated for further growth of the quotes in direction of the dynamic resistance 6.962 (upper Bollinger band).


We note borders of the sideways range (6.899-6.912). Its stability is provided by Bollinger bands. At the same time ADX indicator activity is on a high level, that indicates a probability of upward break. This would trigger an upward wave in direction 6.962.


As we see hourly chart has passive correcting ADX, that limits volatility of the session by the scope of Bollinger bands (6.903-6.913).


Main scenario: Flat in the 6.903-6.913 range.

Alternative scenario: Growth towards 6.962.

Trading recommendations:

Longs from the 6.903 level.


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