USD/CNY downtrend continuation likely

US Dollar Against Chinese Yuan (USD/CNY)

It may be too early to forecast a continuation of the downtrend with this currency pair, but in fact, near term, that is the most probable development.

The October low at 6.7737 will be the first price target to the downside. A close below that level will target 6.7746 and then 6.7109.


USD/CNY chart as at 6 November 2008 using NextVIEW Advisor

TECHNICALS

Stochastic – dropping from Overbought levels
MACD – dropping below its’ zero line into bearish territory.

R1 – resistance at 6.8405
S1 – the first level of support at 6.7737
S2 – the second level of support at 6.7450

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Article and Commentary by Don Schellenberg. A trader and trading coach, he is a noted expert on Market Structure, Elliott Wave and Fibonacci. He trades the forex market.