The USD/CNH pair has created a bear flag - a bearish continuation pattern - on the hourly chart. Essentially, it is a pause that often ends up refreshing the preceding bear move.
4-hour chart
A 4-hour close below the lower edge of the flag, currently at 6.7545, would signal a revival of the sell-off from the high of 6.8682 and open up downside toward 6.625 (target as per the measured move method). That target looks far fetched, given the 14-day relative strength index (RSI) is reporting overbought conditions.
That said, the flag breakdown, if confirmed, could yield a test of the 200-day moving average (MA) lined up at 6.7062. Moreover, the hourly and 4-hour RSI are biased bearish, having moved into the undersold territory (back above 30.00) earlier today.
Trend: bearish after flag breakdown
USD/CNH
Overview:
Today Last Price: 6.7653
Today Daily change: 19 pips
Today Daily change %: 0.0281%
Today Daily Open: 6.7634
Trends:
Previous Daily SMA20: 6.8494
Previous Daily SMA50: 6.8894
Previous Daily SMA100: 6.8924
Previous Daily SMA200: 6.7261
Levels:
Previous Daily High: 6.7851
Previous Daily Low: 6.7586
Previous Weekly High: 6.8687
Previous Weekly Low: 6.7376
Previous Monthly High: 6.9509
Previous Monthly Low: 6.826
Previous Daily Fibonacci 38.2%: 6.7687
Previous Daily Fibonacci 61.8%: 6.775
Previous Daily Pivot Point S1: 6.7529
Previous Daily Pivot Point S2: 6.7424
Previous Daily Pivot Point S3: 6.7263
Previous Daily Pivot Point R1: 6.7794
Previous Daily Pivot Point R2: 6.7956
Previous Daily Pivot Point R3: 6.806
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