Technical analytics

USDCNY market technical outlook


Currency pair is apparently unable to break mid-term resistance level 7.112 (upper Bollinger band). It look like we’ll get a downward reversal with shift to moderate downward wave in direction of the lower Bollinger band (7.052). Development of such wave may take several days.


Market structure remains upward, but with flat tone of trading. Thus movement above 7.113 (upper Bollinger band) is unlikely that in general coincides with conclusions from the daily chart.

Support resides at 7.091 here.


Intraday dynamics is upward allowing to expect one more testing of dynamic resistance at 7.111-7.114. Afterwards the pair probably will slide to 7.097 again. We can definitely treat ongoing situation as flat.

Flat in the 7.097-7.114 range.

Trading recommendations:

Shorts from 7.114 with count on mid-term decline. Short-term trades are unreasonable now.

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