USD/CNH Technical Analysis: Doji suggests temporary low in place

Omkar Godbole FXStreet Contributor

The USD/CNH pair created a long-legged doji candle yesterday, signaling seller exhaustion/indecision in the market place. That, coupled with the bullish divergence on the hourly and 4-hour chart RSIs indicates a temporary low is likely in place at 6.6874.

That said, a close above the downward sloping 10-day MA, currently at 6.7579, is needed to abort the bearish view.

Daily chart

Hourly chart

Trend: corrective bounce

1. R3 6.7835
2. R2 6.7567
3. R1 6.7413
PP 6.7145
1. S1 6.6991
2. S2 6.6723
3. S3 6.6569

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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