- USD/CNH is showing signs of a bearish impulse on the daily chart during weekly accumulation phase.
- Bears looking for bearish conditions to develop below the 21 moving average on the 4-hour time frame.
USD/CNH is on the verge of a technical sell-off in what appears to be a fresh impulse developing on the daily time frame, despitethe weekly prospects to the upside.
In order to take advantage of such a scenario, it is prudent to wait for confirmation son the lower time frames, such as the 4HR chart.
The following is s top down analysis that shows both the weekly and daily outlooks.
Weekly chart
The weekly chart is correcting the 8 consecutive weeks of bearish closes.
This now gives rise to the potential of a meaningful upside correction. However, that is not to say that there cannot be any meanwhile opportunities to the downside left in this period of accumulation.
1D chart
-637364124823045143.png)
The daily chart, however, has given enough of a correction to start looking for downside opportunities.
The price has already started to deteriorate following a deceleration of the bullish correction.
4HR chart
-637364124295894228.png)
There is still some work for the bears to do before the environment moves from bullish to bearish on the 4-hour time frame.
Once the price is below the 21 moving average and has retested the resistance structure, bears will then have a high probability scenario to target 6.72 and below.
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