Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

USD/CNH Tumbles Back Below 7.0000

USD/CNH tumbled yesterday, falling back below the psychological barrier of 7.0000. That said, the pair hit support at 6.9225 and then, it rebounded. Overall, the pair continues to trade within a downside channel that’s been containing the price action since September 2nd, and thus, we would consider the near-term outlook to still be negative.

The rate could continue recovering for a while more, perhaps breaking back above the 7.0000 mark. The bears may decide to take charge again from near the 7.0400 zone, or the upper end of the channel, and drive the rate back down to 6.9225. If that level is not able to withstand the slide this time around, a break lower may pave the way towards the 6.9000 zone, or even the lower bound of the channel.

Shifting attention to our daily oscillators, we see that the RSI hit its 30 line and turned up, while the MACD lies below both its zero and trigger lines. Both indicators detect negative momentum, but the rebound of the RSI adds to our view that some further recovery may be on the cards before the next leg south.

In order to abandon the bearish case, we would like to see a clear break above 7.0843. The rate would already be above the upper end of the channel and may initially aim for the high of October 16th, at around 7.1120. Another break, above 7.1120, may carry more bullish implications, perhaps opening the path towards the 7.1675 hurdle, defined by the peak of October 9th.

USD/CNH daily chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT