USD/CNH Technical Analysis: Bull flag on the hourly chart
- The USD/CNH pair is trapped in a bull flag - a bullish continuation pattern - on the hourly chart.
- A convincing break above 6.8965 (upper edge of the flag) would signal a continuation of the rally from the Dec. 13 low of 6.8563 and would open the doors to 6.9516 (target as per the measured move method, that is, pole height added to breakout price).
- The bull breakout, however, may end up trapping the bulls on the wrong side of the market, if the Fed sounds less dovish than expected. The central bank is expected to remove one hike from the dots in the 2019-2020 period to reflect that the economic outlook is modestly lower than it was in September.
- A downside break of the flag would weaken the bullish pressure. Notably, a move below 6.8563 (recent higher low on the daily chart) could prove costly.
Trend: Bullish above 6.8965
Today Last Price: 6.8953
Today Daily change: -31 pips
Today Daily change %: -0.0449%
Today Daily Open: 6.8984
Previous Daily SMA20: 6.9087
Previous Daily SMA50: 6.9237
Previous Daily SMA100: 6.891
Previous Daily SMA200: 6.6653
Previous Daily High: 6.9054
Previous Daily Low: 6.8783
Previous Weekly High: 6.9228
Previous Weekly Low: 6.8566
Previous Monthly High: 6.9808
Previous Monthly Low: 6.8525
Previous Daily Fibonacci 38.2%: 6.8886
Previous Daily Fibonacci 61.8%: 6.895
Previous Daily Pivot Point S1: 6.8827
Previous Daily Pivot Point S2: 6.867
Previous Daily Pivot Point S3: 6.8557
Previous Daily Pivot Point R1: 6.9098
Previous Daily Pivot Point R2: 6.9211
Previous Daily Pivot Point R3: 6.9368