Technical Insights

In the last Chart of the Day update on 4/11/14 (Spot: 6.1225), we held the view that USD/CNH is in a recovery phase with a target of 6.1440. The target was almost met with a high of 6.1430 last Friday but the subsequent sharp drop has resulted in a mixed outlook from here. That said, with Daily MACD still holding clearly above 0, a sustained break below the recent low at 6.1100 is not expected. Allow for a deeper pull-back towards 6.1110/20 but as long as 6.1000 is not taken out, expect this pair to stage another attempt towards the major resistant just above 6.1400.