Chart USD/CNH Update: Consolidating test of 7.1000 level
Break above strong resistance at the 7.0700/7.0840 lows of August has seen extension to the 7.1000 figure
Level | Imp | Comment | Level | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 7.1400/10 | * | congestion, 50% | S1 | 7.0700 | ** | Aug low | |
R3 | 7.1200 | * | congestion | S2 | 7.0500 | * | congestion | |
R2 | 7.1135 | * | 19 Sep high | S3 | 7.0385 | * | 20 Sep low | |
R1 | 7.1000 | * | 38.2% Jul/Sep fall | S4 | 7.0000 | * | figure |
Asterisk denotes strength of level
05:20 GMT - Break above strong resistance at the 7.0700/7.0840 lows of August has seen extension to the 7.1000 figure and 38.2% Fibonacci retracement. Paused here see prices unwinding the overbought intraday and daily studies but further gains not ruled out. Gains beyond this, if see, will see room to resistance at 7.1135 then the 7.1200 congestion. Gains are seen corrective of the July/September losses and expected to give way to renewed selling pressure later. Meanwhile, support is raised to the 7.0840/7.0700 low of August which now underpin. Would take break here to return focus to the downside to retrace gains from the 6.9710, September YTD low.