Advertising
Advertising
twitter
youtube
facebook
instagram
linkedin
Advertising

US Dollar to CNH - Kim Crammer Larsson takes a technical look

US Dollar to CNH - Kim Crammer Larsson takes a technical look| FXMAG.COM
Aa
Share
facebook
twitter
linkedin

USDCNH spiked higher after the weekend touching the 1.382 projection of the recent correction at around 7.365.
Despite showing divergence on RSI there could be more upside for the pair. RSI is at the time of writing above its falling trendline and if it closes above there is strong indication of higher levels on both USDCNH and RSI which would mean RSI could trade out its divergence. For RSI to trade out its divergence it must take out the high 27th September – horizontal dashed line.

us dollar to cnh kim crammer larsson takes a technical look grafika numer 1us dollar to cnh kim crammer larsson takes a technical look grafika numer 1

Source: Saxo Group

On medium-term longer-term there seems to be more upside. After USDCNH broke above previous highs around 7.20 it is headed towards the 1.382 projection of the 2020-2022 correction at around 7.54. Since we are in un-charted territory there are no strong resistance levels.
On both weekly and monthly time period RSI is at extreme levels but there is currently no divergence supporting the view of higher levels on USDCNH.
The very steep uptrend on weekly has touched the upper trend line in the channel pattern indicating USDCNH is ripe for a correction that could test the lower rising trendline.
However, the upper rising trendline is just shifted parallel from the lower and is not a strong resistance, merely just a guideline.
Support at around 7.00 and if that levels is taken out could become a trend change but until then trend is up on all-time periods.
An indication for a short-term correction would be if RSI on daily chart breaks below its lower rising trendline.

us dollar to cnh kim crammer larsson takes a technical look grafika numer 2us dollar to cnh kim crammer larsson takes a technical look grafika numer 2

Source: Saxo Group

us dollar to cnh kim crammer larsson takes a technical look grafika numer 3us dollar to cnh kim crammer larsson takes a technical look grafika numer 3

 
Source: Saxo Group

Source: Technical Update - USDCNH in uncharted territory. Uptrend is stretched but no resistance ahead | Saxo Group (home.saxo)


Kim Cramer Larsson

Kim Cramer Larsson

Kim Cramer Larsson started his career in 1996 as an equities trader focusing on the US and Asian markets with BG Bank, London. In 1997, Kim relocated to BG Bank, Copenhagen (BG Bank was acquired by Danske Bank in 2000) to the position of equities trader and portfolio manager. 

Kim began using technical analysis as a trading tool from 1997. In 2005, Kim was promoted to the position of technical analyst in the FX & Fixed Income Research department at Danske Bank. In his current role, Larsson focuses on technical analysis of equities, equity indexes, forex pairs, and more for Saxo Bank. Larsson’s views and analyses can be found on Saxo’s News & Research hub as well as at Saxo’s Academy where he hosts webinars focusing on chart analysis.


Topics

Advertising
Advertising