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.


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. 


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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