FOREX: USD/CNY Expected to be in Trading Range

The market appears to be thinly traded on relatively low volume, to be expected during the Christmas and New Year season. For this week there is high probability that the market will trade in a range between the high at 6.8810 and support at 6.8045.

A zig zag correction – down, up, down – can be expected which will most likely be followed by a break of S1 and a test of the October low of 6.7480.


USD/CNY chart as at 24 December 2008 using NextVIEW Advisor. Click on chart for larger view.

TECHNICALS
The price pattern on the chart gives the biggest clue as to what price action will follow.
Stochastic – rising
MACD – at its’ neutral level
RSI – at its’ neutral level, and flat.

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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.

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