FOREX: USD/CNY TO REMAIN STAGNANT

This currency pair has not had a strong trend since July 2008. Essentially this is the longest sideways market for USDCNY since 2005.

This last trading week has been no exception, as shown by the narrow Bollinger Bands on the chart.

Market movement has largely been confined between the high at 6.8853 and the low of 6.9726, as shown by the long horizontal black lines.

The over all price pattern implies that the larger trend is still down, although smaller moves within the sideways range appear to be continuing.


Daily USD/CNY chart as at 19 February 2009 using NextVIEW Advisor. Click on chart for larger view.

R1 – zone of resistance between 6.8325 – 6.8470
R2 – 6.8810
S1 – 6.8130
S2 – 6.7925

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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.