USD/CNH’s decline is ongoing, in spite of ultimate week’s sideways trading, with the forex pair nevertheless concentrated on the 2016 and 2017 lows and 78.6% Fibonacci retracement at 6.4437/17, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.
“USD/CNH is falling closer to the 2016 and 2017 lows and 78.6% Fibonacci retracement at 6.4437/17. There it may also at least non permanent stabilise. Further down sit down the May 2018 excessive at 6.4323 and additionally the February and early May 2018 highs at 6.3835/6.3774.”
“Minor resistance comes in between the October low and the November 12 excessive at 6.6274/6.6349 and additionally at the November 9 excessive at 6.6495. Further resistance sits at the 6.6787 October 9 low as nicely as between the 55-day transferring common and May to November downtrend line at 6.6979/6.7196.”
“While the forex pair stays under the subsequent greater November spike excessive at 6.7746, we will preserve our medium-term bearish outlook.”