USD/CNH looks set for its next leg higher
USD/CNH remains in a soliud uptrend on the daily chart and, after consolidating around the June highs and forming a bullish hammer at 7.25, the swing low appears to be in. A bullish range expansion day broke the bearish resistance line, and bulls could seek to enter upon any pullbacks towards yesterday’s low for a tigher long entry.
The bias remians bullish above Last weej’s hammer low, and we could now be heade for 7.35 or the 2022 high.
A small bulish hammer has also formed on the 1-hour chart. A conservative target projected from the recent leg higher suggests 7.32 for bulls, whilst if we use the run up from 7.27 it projects a target atound 7.34.
The bias remians bullish above Last weej’s hammer low, and we could now be heade for 7.35 or the 2022 high.
A small bulish hammer has also formed on the 1-hour chart. A conservative target projected from the recent leg higher suggests 7.32 for bulls, whilst if we use the run up from 7.27 it projects a target atound 7.34.
Comment:
The lower bull-flag target was met pretty quickly, and after a pullback has now broken to a new cycle high to confirm trend continuation. It also appears the daily wants to continue higher in line with the bias.
Trade closed: target reached:
A textbook momentum trade on both the daily and 1-hour timeframe
