FOREX: USD/CNY Analysis - 23 April

The minor price fluctuations on this week’s chart imply that a test of the R1 resistance level should happen soon.

The market continues to move in a relatively narrow range. The pattern as viewed on last week’s chart had some downside implications. It seems the downside move to test S1 fulfilled that expectation.

At this moment S1 is key to what the market will do in the near term. My expectation is that the market will continue to range between S1 and R1. A penetration of S1 will force a reconsideration of this view.


Daily USD/CNY chart as at 23 April 2009 using NextVIEW Advisor. Click on chart for larger view.

TECHNICALS
Stochastic – down.
RSI – currently in negative territory, and flat.
EMA 200 – flat
EMA20 – beginning to flatten.

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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.