Technical analytics

USDCNY market technical outlook

USD/CNY

Daily chart:

Low activity of ADX indicator doesn’t let bulls reckon on break of the upper Bollinger band (7.097) that can be used for opening short trades with count on reversal in direction of support 7.052 (lower Bollinger band).

H4-chart:

Locally we can see a barrier in the shape of 7.097 level. Thus the most reasonable trading tactics now is short trades in direction of support zone 7.070-7.075 at the lower Bollinger band.

H1-chart:

Intraday market has flat tone so far. Currency pair is traded in a steady sideways channel within Bollinger bands (7.080-7.097). The fact that the upper wall of the channel coincides with daily resistance 7.097 allows considering short-term shorts as well as mid-term positions with count on deeper decline.

 

Expectations:

Main scenario: Flat in the 7.080-7.097.

Alternative scenario: Decline in direction 7.070 and 7.052.

Trading recommendations:

Shorts from 7.097 to 7.080. 7.070, 7.052.

 

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