Home USD/CNY technical analysis: Bulls and bears jostle within triangle formation
FXStreet News

USD/CNY technical analysis: Bulls and bears jostle within triangle formation

  • Triangle formation limits near-term moves.
  • RSI indicates less momentum.

Even after portraying a lower high formation since last two-weeks, the USD/CNY pair is less likely to turn bearish unless clearing a fortnight old ascending support-line. The quote presently takes the rounds near 6.9025 during early Monday.

While 23.6% Fibonacci retracement of the pair’s rise from May 15 and a downward sloping trend-line can limit immediate upside near 6.9090 and 6.9157, buyers can aim for 6.9224 during further advances.

In a case where bulls keep dominating trade sentiment beyond May month high, October 2018 tops surrounding 6.9770 and 7.0000 psychological magnet can become their targets.

14-bar relative strength index (RSI) offers no clear signal as it seesaws in the normal region.

Alternatively, a downside break of 6.8965 support-line may trigger the quote’s fresh selling in the direction to 61.8% Fibonacci retracement near 6.8868.

It should also be noted that the pair’s decline below 6.8868 can avail 6.8750 as an intermediate halt during the drop to revisit mid-May bottom near 6.8647.

USD/CNY hourly chart

Trend: Sideways to positive

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.