FOREX: USD/CHINESE YUAN MOVEMENT TOWARDS SUPPORT

This past week this currency pair has, on average, remained quite flat, as it has for nearly a month.

There was a minor spike toward R1 which failed to hold.

The Bollinger Bands indicator, is even tighter around price that it was a week ago, containing all price movement except the gapping spike upwards.

TECHNICALS


Daily USD/CNY chart as at 5 February 2009 using NextVIEW Advisor. Click on chart for larger view.

R1 – resistance unchanged from last week at 6.8500
S1 – support unchanged from last week at 6.8045
Stochastic – down – reflecting the minor shift in price downwards.
MACD – flat
Pattern – the price pattern suggests that additional price movement toward S1 is the most likely direction for the market this week.

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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.