Technical analytics

USDCNY market technical outlook

Daily chart:

The pair undergoes the stage of downward technical correction in direction of middle Bollinger band (6.941). Upper Bollinger band was broken earlier, therefore we can expect development of new upward wave from support 6.941 to dynamic resistance 7.104, which stands at upper Bollinger band.

H4-chart:

We note two unclosed gaps below the current price at 6.941 and 6.900 levels (watch the yellow marks), where corrective downward wave might be directed.

H1-chart:

Lower Bollinger band was broken suggesting a probable further decline. At the same time we have solid oversold conditions, therefore we can expect intermediate upward correction towards middle Bollinger band (7.051), where the most optimal area for mid-term sell-offs resides.

Expectations:

Upward pullback towards 7.051 and then decline in direction 6.941 and 6.900.

Trading recommendations:

Shorts from 7.051 to 6.941 and 6.900.

 

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