USD/CNH 1H Chart: Channel Up

Source: Dukascopy Bank SA
Recently the US Dollar finished its medium term move in a large scale ascending channel against the Chinese Yuan. As a result of the just described events, a rather short term ascending channel has formed, which represents the currency exchange rate's rebound. It is most likely that the channel up pattern represents the first move in the borders of a medium term pattern. Due to that reason it is most likely going to be broken by some sort of resistance level, and it is imperative to watch weekly and monthly pivot points, which could cause a change in the direction. The hypothesis of a change in direction is supported also by the fact that the pair is already overbought, as 72% of open SWFX positions are long.
  Level  Rationale     Indicator 1H 4H 1D
R4 6.9669 Monthly R3     MACD (12; 26; 9) Buy Buy Buy
R3 6.9409/54 Monthly R2; trend line     RSI (14) Neutral Sell Neutral
R2 6.9330 Weekly R3     Stochastic (5; 3; 3) Sell Sell Sell
R1 6.9203/16 Weekly R2; monthly R1; trend line     ADX (14) Neutral Buy Neutral
S1 6.9116/07 Weekly R1; trend line     CCI (14) Neutral Sell Sell
S2 6.9065 55-hour SMA     AROON (14) Buy Buy Buy
S3 6.9006/8989 100 and 200-hour SMA; weekly PP     Alligator (13; 8; 5) Buy Buy Buy
S4 6.8943/02 Monthly PP; trend line; weekly S1     SAR (0.02; 0.2) Buy Buy Buy
          Aggregate ↗ ↗ ↗
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