US dollar moderate bias to the downside against Chinese Yuan

This past week has primarily been marked by sideways action for this currency pair. The long spike down on October 24/08 may or may not have represented genuine price action (not confirmed).

A drop below the minor rising trend line on the chart will generate a down move that may reach 6.7737 or lower.


USD/CNY chart as at 30 October 2008 using NextVIEW Advisor

TECHNICALS

NextView RSI – this indicator has generated a week sell signal.
Stochastic – has made an unconfirmed sell signal at time of writing.

R1- 6.8404
R2- 6.8702
S1 – 6.8147
S2 – 6.7737

Moderate bias is to the downside.

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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.