FOREX: USD/CNY Analysis

Once again there has been very little movement in value of the USD against the RMB.

There was a minor test of last week’s R1 level, which failed. For the moment the market appears to be quite comfortable in it’s fairly narrow trading range between the R1 and S1 levels identified on the chart.

There has been a slight upward pressure on the market which has not yet dissipated. A new break above R1 could potentially target R2. If that does not happen, expect more of the status quo.


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

TECHNICALS

NextVeiw RSI – flat
Stochastic – overbought level, and turning down slightly
EMA20 – flat
Bollinger Bands – flat and defining current levels of support and resistance
R1 – nearby resistance at 6.8340
R2 – 6.8500
S1 – support at 6.8130
S2 – 6.7925 (not shown on the chart)

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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.

Come and visit Don Schellenberg at ATIC Kuala Lumpur on the 14th and 15th of March 2009