Welcome to this analysis on USD/CNH.
Looking at the daily chart, the price has been trading in a wide range between 6.85 and 7.2 since July. On 28th of May price tested the top resistant of the range and got rejected from there and created a Head And Shoulders reversal pattern at the top half of the range that just got activated by a break and close below the neckline of the pattern at 7.04. The target of the Head And Shoulders is around 6.88 as long as the price doesn't move back up above the right shoulder of the pattern.
The first support zone below the price is around 6.92 and below that the low of the range at 6.85.
This trade idea has 4 rewards to risk ratio.
Good luck trading.
Looking at the daily chart, the price has been trading in a wide range between 6.85 and 7.2 since July. On 28th of May price tested the top resistant of the range and got rejected from there and created a Head And Shoulders reversal pattern at the top half of the range that just got activated by a break and close below the neckline of the pattern at 7.04. The target of the Head And Shoulders is around 6.88 as long as the price doesn't move back up above the right shoulder of the pattern.
The first support zone below the price is around 6.92 and below that the low of the range at 6.85.
This trade idea has 4 rewards to risk ratio.
Good luck trading.
Comment:
Comment:
looks like a running flat correction, it has bearish divergence on the oscillators, a break and close below the red line can be a good sign of continuation to the downside.