FX May 05, 2022 / 03:20 am UTC

Chart USD/CNH Update: Scope for deeper corrective pullback

By PakLai Ng


LevelImpComment

LevelImpComment
R46.7130
congestion
S16.6100*29 Apr low
R36.6980**3 May YTD high
S26.6000*figure
R26.6700
4 May high
S36.5875*Apr 2021
year high
R16.6600
congestion
S46.5450
26 Apr low

Asterisk denotes strength of level

04:10 GMT - Break of the 6.6400 extending rejection from the 6.6980 high as prices unwind the deep overbought readings on daily and weekly studies. Pullback see the 6.6100 level now within reach and break here will see room for deeper correction to the 6.6000/6.5875 area. The latter should underpin and only break here will open up deeper pullback to correct strong gains from the 6.3450, late-Mar low. Meanwhile, congestion at the 6.6400/6.6600 area now expected to cap and sustain corrective pressure. 

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