Trendsharks

USDCNY Likely to Rebound From the 23.6% Fibonacci

Long
FX_IDC:USDCNY   U.S. Dollar / Chinese Yuan
The price action of the USDCNY pair has been range-trading since the 16th of July, as underpinned by the ADX indicator. Bearish pressure has been slowly accumulating over the same period, which is illustrated by the current reading of the Stochastic RSI indicator.

The price action is likely to reach a new dip at the 23.6 per cent Fibonacci retracement level, which is the closest psychologically significant support level . A bullish rebound can be expected to occur there, given the current development of a Descending Wedge pattern. The latter represents a classic trend reversal pattern.

The first major target for the renewed uptrend would be the descending trend line (in red) just above the 38.2 per cent Fibonacci.

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