Chartbook: Chart USD/CNH: Extending gains within the December channel
Rebound from the 61.8% Fibonacci retracement of the December/March rally at 7.1650 level has seen gains to retest the Q1 high 7.2830.
Rebound from the 61.8% Fibonacci retracement of the December/March rally at 7.1650 level has seen gains to retest the Q1 high 7.2830.
Break here will further extend gains within the bullish channel from the late-December low and see room to the 7.3000 figure and 78.6% Fibonacci retracement of the September/December 2023 losses. The deep overbought daily and weekly studies caution corrective pullback and suggest test here to give way to consolidation. A later break, if seen, will see open up scope to the 7.3470/7.3500 congestion area.
Above these will return focus to the 2023 and 2022 year highs at 7.3680/7.3750 where reaction can be expected and to give way to selling pressure.
Meanwhile, pullback should see support starting is at the 7.2400 congestion then the key 7.2000 figure which also marks 2019/2020 year highs. This is also channel support from the December low and see break here needed to weaken and turn focus lower to the 7.1000 level and 7.0875 low of December 2023.