Technical analytics

USDCNY market technical outlook

Daily chart:

We note strong bearish readings of ADX indicator suggesting high probability of continuation of the quotes’ decline in direction of support level 6.9229. 

H4-chart:

Utmost zone for correction is middle Bollinger band (7.0221 mark) and it’s the most optimal area for opening new short-trades.

Support, which provides relative stability to the pair is 6.9887 (lower Bollinger band).

H1-chart:

On hourly chart we also observe a tendency for consolidation of the market inside Bollinger bands (support is 6.9865, resistance is 7.0132-7.0221).

ADX is in a weak zone, therefore flat scenario is the main expectation from today’s session.

Expectations:

Main scenario: Flat in the 6.9865-7.0221 range.

Alternative scenario: Continuation of quotes’ decline in direction 6.9229.

Trading recommendations:

Shorts from 7.0132-7.0221 to 6.9865 and 6.9229.

 

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