Technical analytics

USDCNY market technical outlook

Daily chart:

Currency pair flows right in the middle of Bollinger bands, therefore despite a mid-term downtrend there is a probability of pullback towards 7.0747 (upper Bollinger band). It’s here we have the most optimal area for potential sell-offs.

H4-chart:

Local trend is upward, therefore so far we can consider longs with count on move to the 7.0747 region. At the same time ADX readings are low, therefore bulls might get problems at resistance level 7.0433 (upper Bollinger band).

 

H1-chart:

As we see despite numerous attempts lower Bollinger band wasn’t broken. Most likely this will drive to start of the movement to the upper boundary of the bands at 7.0433.

Expectations:

Growth towards 7.0433.

Trading recommendations:

Longs towards 7.0433.