Technical Analysis USDCNH : 2020-07-31

IFC Markets

Master Trader
Oct 31, 2012
1,438
4
84
London (Great Britain)
www.ifcmarkets.com
Recommendation for USD/CNH: Buy

Buy Stop : Above 7,03
Stop Loss : Below 6,96

IndicatorValueSignal
RSIBuy
MACDBuy
MA(200)Neutral
FractalsNeutral
Parabolic SARBuy
Bollinger BandsNeutral


Chart Analysis
IFC Markets Tech Analysis

On the daily timeframe, USDCNH: D1 exited the downtrend. A number of technical analysis indicators formed signals for a further growth. We do not rule out a bullish movement if USDCNH rises above the last upper fractal: 7.03. This level can be used as an entry point. We can set a stop loss below the Parabolic signal and 2 last lower fractals: 6.96. After opening a pending order, we should move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop-loss, moving it in the direction of the trend. If the price meets the stop loss (6.96) without activating the order (7.03), it is recommended to delete the order: the market sustains internal changes that haven't been taken into account.
Fundamental Analysis

The US dollar rate began to strengthen slightly after the regular Fed meeting, at which no additional economic stimulus through emission was announced. Will the USDCNH quotations rise?