USDCNH: We believe it may be running into an area of resistance
Market reaction: Risk-off mood was elevated across the board. Particularly AUDUSD and AUDJPY down more than 0.5%, Copper down more than 3.0% and USDCNH rose more than 0.70% at one point in an early Asian session.
USDCNH: The cross again fails to breach the July 02 on Wednesday’s Asian session. We believe it may be running into an area of resistance defined the following:
• The 61.8% fib reaction seems to be at 6.7000 (Jan 2017 high-March 2018 low)
• The parallel resistance zone appears between 6.7160-6.7230
• Traced out a double top between 6.9950-6.6862
• The daily studies RSI and the oscillator are remaining bearish
• Overall supply zone spread between 6.7000-6.7230
On a monthly basis, a recovery back above 6.7640 Jan 2016 high seems hard. In this case, this would point a new downward wave towards 6.6130-6.6000.
USDCNH: The cross again fails to breach the July 02 on Wednesday’s Asian session. We believe it may be running into an area of resistance defined the following:
• The 61.8% fib reaction seems to be at 6.7000 (Jan 2017 high-March 2018 low)
• The parallel resistance zone appears between 6.7160-6.7230
• Traced out a double top between 6.9950-6.6862
• The daily studies RSI and the oscillator are remaining bearish
• Overall supply zone spread between 6.7000-6.7230
On a monthly basis, a recovery back above 6.7640 Jan 2016 high seems hard. In this case, this would point a new downward wave towards 6.6130-6.6000.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.