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).

H4-chart:

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.

H1-chart:

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).

Expectations:

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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