Chart USD/CNH Update: Extending corrective gains
Extending bounce from the 6.9710 low and regaining the 7.0000 level see room for stronger retracement of the September losses from 7.1365 high
Level | Imp | Comment | Level | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 7.1000 | ** | figure, congestion | S1 | 7.0000 | * | figure | |
R3 | 7.0840 | * | 5 Aug low | S2 | 6.9710 | ** | 26 Sep YTD low | |
R2 | 7.0700 | * | 30 Aug low, congestion | S3 | 6.9650 | * | 2 May 2023 high | |
R1 | 7.0385 | * | 20 Sep low | S4 | 6.9550 | * | 50% 2023 rally |
Asterisk denotes strength of level
05:40 GMT - Extending bounce from the 6.9710 low and regaining the 7.0000 level see room for stronger retracement of the September losses from 7.1365 high. Daily studies are unwinding the oversold readings and higher see room to the 7.0385 resistance. Above this will open up the strong resistance at the 7.0700/7.0840 previous lows, then the 7.1000 level which is expected to cap. Correction seen giving way to renewed selling pressure and below the 7.0000 level will return focus to the 6.9710 low. Break of the latter see extension to the 6.9550, 50% Fibonacci retracement of the 2023 rally.