USD/CNH meets long term support
The US Dollar has been plummeting against the Chinese Yuan during the second half of August. However, it seems that the decline of the Buck against the Yuan has ended.
The currency exchange rate has met the support of a rather week long term descending channel pattern near the 6.5240 mark. It is possible that the trend line managed to hold its ground because of the weekly S1, which is located at that level.
Since then the pair has managed to score gains and reach the 6.56 mark, and it is expected to continue the surge. However, politics are more likely to set the exchange rate.
The currency exchange rate has met the support of a rather week long term descending channel pattern near the 6.5240 mark. It is possible that the trend line managed to hold its ground because of the weekly S1, which is located at that level.
Since then the pair has managed to score gains and reach the 6.56 mark, and it is expected to continue the surge. However, politics are more likely to set the exchange rate.
Transaction en cours:
The review of the USD/CNH pair was not done for quite some time. However, it can be observed that the large scale situation has not changed. The US Dollar continues to lose value in two massive scale channel down patterns against the Chinese Yuan.
At the start of September the pair hit the combined support of two dominant channel down patterns, which resulted in a rebound. The rebound has been occurring in an ascending channel pattern. However, the channel is about to become obsolete.
The pair is approaching the resistance of the medium term channel down pattern, which is strengthened by the weekly R2 at 0.6070. In addition the 200-period SMA is approaching from the upside.
The review of the USD/CNH pair was not done for quite some time. However, it can be observed that the large scale situation has not changed. The US Dollar continues to lose value in two massive scale channel down patterns against the Chinese Yuan.
At the start of September the pair hit the combined support of two dominant channel down patterns, which resulted in a rebound. The rebound has been occurring in an ascending channel pattern. However, the channel is about to become obsolete.
The pair is approaching the resistance of the medium term channel down pattern, which is strengthened by the weekly R2 at 0.6070. In addition the 200-period SMA is approaching from the upside.
Commentaire:
The US Dollar trades in an ascending channel pattern against the Chinese Yuan. The channel was formed as a result of a rebound against 2017 low level, which also acts as a 0.00% point for any Fibonacci retracement level.
Most recently the currency exchange rate hit the combined support of the lower trend line of the ascending channel pattern and the 23.60% Fibonacci retracement level just above the 6.5700 mark.
Due to that reason a rebound should occur. However, take into account that there is no notable massive scale pattern noticed on the daily charts, which means that the support might be passed after all.
The US Dollar trades in an ascending channel pattern against the Chinese Yuan. The channel was formed as a result of a rebound against 2017 low level, which also acts as a 0.00% point for any Fibonacci retracement level.
Most recently the currency exchange rate hit the combined support of the lower trend line of the ascending channel pattern and the 23.60% Fibonacci retracement level just above the 6.5700 mark.
Due to that reason a rebound should occur. However, take into account that there is no notable massive scale pattern noticed on the daily charts, which means that the support might be passed after all.
Following a two-month depreciation against the Chinese Yuan, the US Dollar entered a medium-term recovery period in the result of which the pair formed a channel up. The current wave southwards which began last week resembles another junior channel.
Given characteristics of both patterns, the rate is expected to move sideways or tended slightly south, thus approaching the lower boundaries of both patterns circa 6.63/64. This area is reinforced by the 100-hour SMA and the weekly PP. Further direction of the pair is dependent on various factors.
On the one hand, the bullish up-trend has lost strength, indicating that the senior channel might be breached to the downside. The US Dollar could nevertheless respect the boundaries of the junior formation until 200-hour SMA near 6.61, at least.
On the other hand, bullish sentiment could prevail and push the rate to the upside. Upside target could be set near the 6.7340 mark at the monthly R1 and the weekly R2.