This analysis takes a quick look at the USDCNY on a Daily tf chart. The points noted on the chart are discussed below:
(1) Major bearish trendline in the USDCNY (in color blue) that has been active since ~January 04, 2018 and was successfully tested on July 3, 2017.
(2) This region marks indicates where the USDCNY is expected to find resistance on a breakout above the major trendline. This region is indicated by the price labels as ~ between $6.84 and $6.80.
(3) This is the resistance area that coincides with the major trendline i.e. (1) above. The implication of both is that it indicates stronger resistance than (2) above. (3) is present between ~$6.72 and $6.67.
(4) Support region between ~$6.57 and $6.53 that is expected to provide a bullish momentum upwards in price action. A break below this region is expected to see price reach between ~$6.48 and $6.44 as indicated by (5) in the chart.
(6) This is the MACD with only the MACD line (blue) and signal line (orange) color shown here. Both indicate a bullish bias for the USDCNY. However, price at the trendline (1) and resistance area (2) above do suggest waiting to see what happens at the resistance area before taking further action.
(1) Major bearish trendline in the USDCNY (in color blue) that has been active since ~January 04, 2018 and was successfully tested on July 3, 2017.
(2) This region marks indicates where the USDCNY is expected to find resistance on a breakout above the major trendline. This region is indicated by the price labels as ~ between $6.84 and $6.80.
(3) This is the resistance area that coincides with the major trendline i.e. (1) above. The implication of both is that it indicates stronger resistance than (2) above. (3) is present between ~$6.72 and $6.67.
(4) Support region between ~$6.57 and $6.53 that is expected to provide a bullish momentum upwards in price action. A break below this region is expected to see price reach between ~$6.48 and $6.44 as indicated by (5) in the chart.
(6) This is the MACD with only the MACD line (blue) and signal line (orange) color shown here. Both indicate a bullish bias for the USDCNY. However, price at the trendline (1) and resistance area (2) above do suggest waiting to see what happens at the resistance area before taking further action.
