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Traders Workshop

USDCNH Broke Above Major Resistance Trend Line

Currencies / Forex Trading Oct 02, 2017 - 04:47 PM GMT

By: Franco_Shao

Currencies

USDCNH extended its upside movement from 6.4412 to as high as 6.6777, breaking through a major bearish trend line on its daily chart, confirming that the bearish movement from 6.8588 had completed at 6.4412 already.


On the upside

There is a bullish trend line with support at around 6.6490 on the 4-hour chart. As long as the price is above the trend line, the upside movement from 6.4412 could be expected to continue and next resistance level would be at 6.7210. Move through here if seen could trigger further upside move targeting next resistance level at 6.8588, followed by 6.9170.


On the downside

A clear break below the trend line on the 4-hour chart could bring price back to test 6.6362 key support. Below this level would suggest that the short term uptrend from 6.4412 is complete, then the following correction pullback could take price to next support level at 6.5561. Break though this level would aim 6.5200 area.

For long term analysis

The USDCNH pair is in long term uptrend from 6.0152, the fall from 6.9867 is likely correction of the uptrend. Another rise towards 7.0000 important psychological level is possible over the next several months.


Technical levels

Support levels: 6.6490 (the bullish trend line on the 4-hour chart), 6.6362 (the key support), 6.5561 (the September 21 low), 6.5200, 6.4412 (the September 8 low).

Resistance levels: 6.7210 (the June 1 low), 6.8588 (the June 26 high), 6.9170 (the important resistance on the daily chart), 6.9867 (the January 3 high), 7.0000 (the important psychological level).

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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