Chart USD/CNH Update: Consolidating test of 7.2600 - studies rising
The anticipated test of resistance at the 7.2600 break level is being pushed back from 7.2660
| Level | Imp | Comment | Level | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 7.3000 | * | congestion | S1 | 7.2120 | 13 Nov low | ||
| R3 | 7.2760 | * | 30 Jul (w) high | S2 | 7.2000 | * | break level | |
| R2 | 7.2660 | intraday high | S3 | 7.1500 | * | break level | ||
| R1 | 7.2600 | ** | break level | S4 | 7.1200 | * | congestion |
Asterisk denotes strength of level
17:00 GMT - The anticipated test of resistance at the 7.2600 break level is being pushed back from 7.2660, as overbought intraday studies unwind, with prices currently trading around 7.2430. A minor pullback is possible, but rising daily readings and positive weekly charts are expected to prompt fresh buying interest towards the 7.2120 low of 13 November. Just lower is the 7.2000 break level. A close beneath here, if seen, would add weight to sentiment and prompt a deeper pullback towards 7.1500. Following cautious trade, higher levels are looked for. A close above 7.2600 will improve price action and extend September gains towards the 7.2760 weekly high of 30 July. Already overbought daily stochastics could limit any immediate break above here in selling interest towards congestion around 7.3000.