| Indicator | 4H | 1D | 1W |
|---|---|---|---|
| MACD(12;26;9) | Buy | Buy | Sell |
| RSI(14) | Neutral | Neutral | Neutral |
| Stochastic(5;3;3) | Sell | Neutral | Neutral |
| Alligator(13;8;5) | Buy | Buy | Neutral |
| SAR(0.02;0.2) | Buy | Sell | Buy |
| Aggregate | ⇗ | ⇒ | ⇒ |
The USD/CNH currency pair has been trading downwards within the falling wedge pattern since the beginning of October. As apparent on the chart, the pair has already reversed south from the upper pattern line.
From a theoretical perspective, it is likely that some downside potential could prevail in the market, as the exchange rate should target the lower pattern line located in the 6.9000/6.9400 area.
However, this decline might not be immediate, as the currency pair could gain support from the monthly S1 and the Fibonacci 23.60% retracement, located at 6.9952 and 6.9733 respectively. Also, it is unlikely that bulls could prevail, and the pair could exceed the monthly PP at 7.0823.