Chart USD/CNH Update: Extending April 2025 losses
Cautious trade around 6.9500 has given way to a break lower
| Level | Imp | Comment | Level | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 7.0000 | * | figure | S1 | 6.9000 | ** | congestion | |
| R3 | 6.9710 | * | Sep 2024 year low | S2 | 6.8700 | * | 76.4% 2023/2025 rally | |
| R2 | 6.9650 | * | break level | S3 | 6.8600 | ** | range lows | |
| R1 | 6.9500 | * | congestion | S4 | 6.8700 | * | 76.4% 2023/2025 rally |
Asterisk denotes strength of level
17:30 GMT - Cautious trade around 6.9500 has given way to a break lower, with April 2025 losses approaching congestion support at 6.9000. Daily studies are turning down and broader weekly charts are also under pressure, highlighting a bearish tone and room for further losses in the coming sessions. A break below 6.9000 will open up strong support at the 6.8700 Fibonacci retracement. Already oversold weekly stochastics could limit any initial tests in consolidation/short-covering, before deteriorating longer-term charts prompt further losses. Meanwhile, resistance is at congestion around 6.9500. A close above here, if seen, will help to stabilise price action and prompt consolidation within the broad 6.9500 - 7.0000 range.