The USD/CNH pair is heading towards 2016 and 2017 lows and 78.6% Fibonacci retracement, which were made at 6.4437/17, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank reports.
Key quotes
“USD/CNH’s decline is ongoing with the currency pair sliding towards the 2016 and 2017 lows and 78.6% Fibonacci retracement at 6.4437/17. There it may at least short-term stabilise. Further down sit the May 2018 high at 6.4323 and also the February and early May 2018 highs at 6.3835/6.3774.”
“Minor resistance above the 6.5971 late November high comes in between the October low and the November 12 high at 6.6274/6.6349 and also at the November 9 high at 6.6495. Further resistance can be seen along the May-to-November downtrend line at 6.6646 and also sits at the 6.6787 October 9 low.”
“While the currency pair remains below the next higher November spike high at 6.7746, we will retain our medium-term bearish outlook.”
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