USDCNY Next week will probably top and turn sideways


The USDCNY pair has been on a very strong rise since it got detached from the 1D MA50 (blue trend-line) on August 11. The bullish channel resembles that of mid April – mid May, which topped on its 6.0 Fibonacci extension from its previous Support. The RSI is printing a similar sequence that was just before that top.

As a result it is a possibility that the pair tops next week around 7.300 and then pulls back to the 4.0 Fib, turning sideways until it tests the 1D MA50 again, where the next long-term trend will be revealed: either a bullish continuation or a closing below it and a new bearish pattern will be introduced.

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