USD/CNH Currency Pair Forecast

Green day on Friday for USD/CNH currency pair after gaining 0.0011%
(Updated on Jun 21, 2024)

USDCNH Signals & Forecast

Mostly positive signals in the chart today. The USD/CNH currency pair holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $7.28 and $7.25. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, May 03, 2024, and so far it has risen 1.41%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). USD/CNH has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk. The currency pair had a Golden Star Signal on Monday, May 20, 2024 for the short-term and also have Golden Star Signal for the medium-term dated Monday, February 26, 2024.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the currency pair in question.

Support, Risk & Stop-loss for USD/CNH currency pair

USD/CNH finds support from accumulated volume at $7.27 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved $0.0087 between high and low, or 0.119%. For the last week the currency pair has had daily average volatility of 0.182%.

The USD/CNH currency pair is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some currency pairs may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the currency pair manages to break the trend before that occurs.

Our recommended stop-loss: $6.84 (-6.13%) (This currency pair has low daily movements and this gives low risk. The RSI14 is 83 and this increases the risk substantially. There is a buy signal from a pivot bottom found 54 days ago.)

Trading Expectations (USDCNH) For The Upcoming Trading Day Of Monday 24th

For the upcoming trading day on Monday, 24th we expect USD/CNH to open at $7.29, and during the day (based on 14 day Average True Range), to move between $7.28 and $7.30, which gives a possible trading interval of +/-$0.0118 (+/-0.16%) up or down from last closing price. If USD/CNH takes out the full calculated possible swing range there will be an estimated 0.32% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $7.27, some $0.0243 (0.33%) from the current price of $7.29, our system finds the risk reward attractive.

Is USD/CNH currency pair A Buy?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for USD/CNH currency pair to perform well in the short-term period.

Current score: 3.758 Buy Candidate Unchanged

Predicted Opening Price for USD/CNH of Monday, June 24, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.