Technical analytics

USDCNY market technical outlook

Daily chart:

The pair is still getting support at the area of lower Bollinger band (7.0440-7.0625), that drove yesterday to forming of bullish inside bar. It’s a buy signal which may trigger an upward wave in direction 7.1705 (upper Bollinger band).

 

We note strong local resistance 7.1156 (upper Bollinger band) from where we can consider sell-offs in direction 7.0490.

H1-chart:

On hourly chart upper Bollinger band was broken allowing to go long from middle band (7.0822) and hold positions towards 7.1156. Then, following the conclusions from H4-frame we can switch again to short-trades. 

Expectations:

So, we expect pullback towards 7.0822, then growth towards 7.1156 and after that the pair again will shift to downward wave.

Trading recommendations:

  1. Longs from 7.0822 to 7.1156.

  2. Shorts from 7.1156.

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