USD/CNH 1H Chart: Falling Wedge

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3) Neutral Sell Neutral
Alligator (13; 8; 5) Sell Sell Sell
SAR (0.02; 0.2) Sell Sell Sell
Aggregate

The American Dollar is losing value against the Chinese Yuan in a two week long descending channel. Formation of the pattern represents a rebound of the currency rate from the bottom trend-line of a preceding short-term channel down. During the last week the pair tried to reach the pattern's upper boundary for the third time. However, this attempt was neutralized by the 100-hour SMA near 6.7480. Since that moment the rate continued to move to the south, which was a sign of transformation of the channel into the falling wedge. Most probably, the rate will continue to move along the 20-hour SMA and slip towards the updated weekly S1 at 6.7211. This support level should force the pair to make another rebound before leaving the pattern.

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