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USD/CNH Technical Analysis: Trapped in a symmetrical, eyes Fed speak

  • Trapped in a symmetrical triangle or a narrowing price range, the USD/CNH is currently lacking a clear direction. The pair, however, may pick up a strong bid and rise through the upper edge of the triangle, confirming a bull breakout if the Fed policymakers, scheduled to speak this week, put more emphasis on the need for an above-neutral rate policy.

Daily chart

  • As seen above, the triangle resistance is currently located at 6.9575 and the support is seen at 6.9262.
  • A bull breakout, if confirmed, would signal a resumption of the rally and allow a test of the major psychological hurdle of 7.00. The 14-day relative strength index (RSI) of 55 indicates there is plenty of room to rally after the bull breakout.
  • A triangle breakout, however, would validate the bearish divergence of the 14-week RSI and open the doors to a deeper pullback 6.80.

USD/CNH

Overview:
    Today Last Price: 6.9476
    Today Daily change: 74 pips
    Today Daily change %: 0.107%
    Today Daily Open: 6.9402
Trends:
    Previous Daily SMA20: 6.9351
    Previous Daily SMA50: 6.9167
    Previous Daily SMA100: 6.8697
    Previous Daily SMA200: 6.6222
Levels:
    Previous Daily High: 6.948
    Previous Daily Low: 6.9306
    Previous Weekly High: 6.9504
    Previous Weekly Low: 6.9191
    Previous Monthly High: 6.9798
    Previous Monthly Low: 6.8674
    Previous Daily Fibonacci 38.2%: 6.9372
    Previous Daily Fibonacci 61.8%: 6.9414
    Previous Daily Pivot Point S1: 6.9312
    Previous Daily Pivot Point S2: 6.9222
    Previous Daily Pivot Point S3: 6.9138
    Previous Daily Pivot Point R1: 6.9486
    Previous Daily Pivot Point R2: 6.957
    Previous Daily Pivot Point R3: 6.966

 

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