- USD/CNH is sidelined in Asia, having printed three-month lows on Thursday.
- Thursday's Doji candle represents downtrend exhaustion and neutralizes immediate bearish view,
USD/CNH dropped to a three-month low of 6.9809 on Thursday and ended up creating a Doji candle on the daily chart.
A Doji comprises long shadows, representing two-way price action and a small body, representing a flat close. Usually, it is reflective of indecision in the marketplace. In this case, however, the Doji candle has appeared at multi-month lows and following a sell-off from the May 27 high of 7.1964 and represents seller exhaustion.
However, a reversal higher would be confirmed if the pair ends Friday above the Doji candle’s high of 7.00. Alternatively, a close below the Doji candle’s low of 6.9809 would imply a continuation of the sell-off from the highs seen in May.
At press time, the pair is trading largely unchanged on the day at 6.9969.
Trend: Seller exhaustion
|Today last price||6.9978|
|Today Daily Change||0.0010|
|Today Daily Change %||0.01|
|Today daily open||6.9968|
|Previous Daily High||7.0012|
|Previous Daily Low||6.9808|
|Previous Weekly High||7.088|
|Previous Weekly Low||7.0584|
|Previous Monthly High||7.1518|
|Previous Monthly Low||7.04|
|Daily Fibonacci 38.2%||6.9886|
|Daily Fibonacci 61.8%||6.9935|
|Daily Pivot Point S1||6.9847|
|Daily Pivot Point S2||6.9726|
|Daily Pivot Point S3||6.9643|
|Daily Pivot Point R1||7.0051|
|Daily Pivot Point R2||7.0134|
|Daily Pivot Point R3||7.0255|
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