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21 Feb 2014
Flash: USD/CNY breaks LT downtrend resistance - ANZ
FXStreet (Bali) - Tim Riddell, FX Research Strategist at ANZ, notes an important technical change in the USD/CNY trend.
Key Quotes
"The CNY appreciation since mid-2010 (after post-crisis stability was relaxed) was held within a downtrend which has been broken this month (6.0590)."
"Additionally, this week’s break above a standard 100-day moving average (6.0770) raises the potential for a change in trend."
"USD/CNY has already moved back to test the lows of November 2013 at 6.0865. A break above this level will raise the potential of a minimal (23.6% of the slide since mid-2012) retracement back to 6.1220-25 area."
"The 6.0865 area may act as a cap but could also be a medium-term pivot point. Consequently, a weekly close above this level could trigger the technical push towards 6.1220."
"Failure to close above 6.0865 will temper upside potential, though slippage below 6.6050 is needed to suggest sidelining rather than retracements."
Key Quotes
"The CNY appreciation since mid-2010 (after post-crisis stability was relaxed) was held within a downtrend which has been broken this month (6.0590)."
"Additionally, this week’s break above a standard 100-day moving average (6.0770) raises the potential for a change in trend."
"USD/CNY has already moved back to test the lows of November 2013 at 6.0865. A break above this level will raise the potential of a minimal (23.6% of the slide since mid-2012) retracement back to 6.1220-25 area."
"The 6.0865 area may act as a cap but could also be a medium-term pivot point. Consequently, a weekly close above this level could trigger the technical push towards 6.1220."
"Failure to close above 6.0865 will temper upside potential, though slippage below 6.6050 is needed to suggest sidelining rather than retracements."