Chart USD/CNH Update: Choppy trade - studies rising
The anticipated minor pullback has bounced from above 7.2100
| 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 | 12 Nov high | S4 | 7.0865 | ** | 4 Nov (w) low |
Asterisk denotes strength of level
17:15 GMT - The anticipated minor pullback has bounced from above 7.2100, with prices currently trading around 7.2450. Intraday studies are mixed, suggesting potential for further cautious trade, before rising daily readings and positive weekly charts prompt further gains. A later close above resistance at the 7.2600 break level will improve price action and extend September gains 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 support at the 7.2000 break level, not seen, would turn price action neutral and prompt consolidation above 7.1500.