Chart USD/CNH Update: Consolidating, but 6.9630 low at risk
Extend consolidation above the Monday's low at 6.9630 but the downside remains vulnerable
| Level | Imp | Comment | Level | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 7.0500/40 | ** | congestion, 3 Dec low | S1 | 6.9630 | * | 12 Jan YTD low | |
| R3 | 7.0300 | * | congestion | S2 | 6.9500 | * | congestion | |
| R2 | 6.9960/00 | ** | 8 Jan high, congestion | S3 | 6.9300 | * | congestion | |
| R1 | 6.9800 | * | congestion | S4 | 6.9000 | ** | congestion |
Asterisk denotes strength of level
04:40 GMT - Extend consolidation above the Monday's low at 6.9630 but the downside remains vulnerable. Break here will further extend losses from the 7.4290 April high and see room for extension to support at the 6.9500/6.9300 congestion area. Lower still, will see scope to target 6.9000 level. Meanwhile, resistance is at the 6.9800 congestion which extend to the 6.9960 high of last week. Would take break of these and the 7.0000 level to ease the downside pressure and open up room for stronger corrective bounce to retrace losses from the October swing high towards the 7.0300 congestion and strong resistance at 7.0500/40 area.