Chart USD/CNH Update: Extending September gains
Cautious trade around 7.2000 has given way to a sharp break higher
| Level | Imp | Comment | Level | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 7.3000 | * | congestion | S1 | 7.2000 | * | break level | |
| R3 | 7.2760 | * | 30 Jul (w) high | S2 | 7.1500 | * | break level | |
| R2 | 7.2600 | ** | break level | S3 | 7.1200 | * | congestion | |
| R1 | 7.2550 | intraday high | S4 | 7.0865 | ** | 4 Nov (w) low |
Asterisk denotes strength of level
16:55 GMT - Cautious trade around 7.2000 has given way to a sharp break higher, with prices currently within reach of resistance at 7.2600. Overbought intraday studies are unwinding, highlighting potential for a minor pullback, before rising daily readings extend September gains beyond 7.2600 towards the 7.2760 weekly high of 30 July. Daily stochastics are already overbought, however, and broader weekly charts are also overstretched, suggesting any immediate break beyond here could meet selling interest towards congestion around 7.3000. Meanwhile, a close back below 7.2000, not seen, would turn price action neutral and prompt consolidation above 7.1500.