USD/CNY bottomed in mid-January 2014 at 6.0402 and has since moved higher in a corrective mode. The first A-B-C correction completed at 7.1842 and the following decline is counted as an X-wave. This X-wave is near completion and will ideally see a bottom near 6.4000 from where a new rally higher is expected towards 6.6985 as the first serious resistance. Longer term we could see USD/CNY move a lot higher.
R3: 6.5561
R2: 6.5261
R1: 6.4949
Pivot: 6.4754
S1: 6.4448
S2: 6.4200
S3: 6.4000
Trading recommendation:
Buy USD near 6.4000 and place your stop at 6.3900
The material has been provided by InstaForex Company - www.instaforex.com