Chart USD/CNH Update: Fresh year lows - studies under pressure
Cautious trade is giving way to anticipated losses
| Level | Imp | Comment | Level | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 6.8600 | * | 11 Mar low | S1 | 6.7750/55 | ** | congestion; current year low | |
| R3 | 6.8500 | ** | 29 Apr high, congestion | S2 | 6.7500 | * | congestion | |
| R2 | 6.8200/70 | ** | congestion, Feb low | S3 | 6.7350 | ** | 61.8% ret of 2022-2025 rally | |
| R1 | 6.8000 | * | congestion | S4 | 6.7200 | * | congestion |
Asterisk denotes strength of level
16:35 BST - Cautious trade is giving way to anticipated losses, with prices currently balanced around the 6.7755 fresh year low. Daily readings are bearish and the weekly Tension Indicator is turning down, highlighting room for still deeper losses in the coming sessions. A close below 6.7755 will add weight to sentiment and extend April 2025 losses towards historic congestion around 6.7500. Just lower is the 6.7350 Fibonacci retracement. But a tick higher in weekly stochastics could limit any initial tests in short-covering/consolidation. Meanwhile, resistance remains at congestion around 6.8000. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath 6.8200/70.