USD/CNH: Leveling out slightly above the Mar 2016 & Sep low at 6.4437/29 - Commerzbank
|"USD/CNH’s recent decline has taken it to its current January low at 6.4668, to where the 200 week moving average and long term uptrend line at 6.4906/6.4668 are to be found," Commerzbank Technical Analysis Research Team notes.
Key quotes
Together with the March 2016 and September low at 6.4437/29 we expect this area to hold before a recovery is seen.
Should we be proved to be incorrect and were a daily chart close below the 6.4437/29 zone to be witnessed, we would have to allow for the October 2015 low at 6.3153 to be reached.
Good resistance can be found between the October and November lows at 6.5576/6.5680.
While no unexpected rise above the next higher 55 day moving average at 6.5948 is seen, we will retain our neutral outlook. For it to remain valid the 6.4437/29 area will need to hold, though.
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