USDCNY RSI Bullish Divergence calling for a buy

The USDCNY pair gave us an excellent sell opportunity on our last analysis (October 02 2023, see chart below), as it stayed below Resistance 1 and hit our 7.1225 Target


At the moment the price is struggling to break above the 1D MA5 (blue trend-line), which it hit yesterday for the first time since November 06 2023. What we are currently more interested at is the Higher Lows trend-line that the 1D RSI has been trading on since November 21. During that time, the price is on Lower Lows, which from an RSI perspective is a Bullish Divergence.

At the same time, the pair just formed a 1D Death Cross, the first since February 03 2023, which was on the previous long-term market bottom. What followed after that was a 1D MA100 test (green trend-line). Since we are already on a small rebound, we will buy after a 1D candle closes above the 1D MA50 and target 7.2200 (projected contact with the 1D MA100). Then if the price pulls back and as long as it is above the 1D MA50, we will buy again and target Resistance 2 at 7.2975.

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