USD/CNH Pullback Opportunity

Yesterday, we had recommended a breakout trade for this pair. Price has moved higher to 6.9125. There is still no sign of a reversal as yet. Price could continue to move higher but price may also pullback to the Fibonacci 38% to 50% correction points. This could be another opportunity to enter into a buy trade for another rally to 6.9290.

MACD is still bullish so the trend is likely to continue higher in the near term but Stochastic is into the overbought zone. As such there could be a corrective pullback before the rally resumes again.

Watch for the pullback towards the Fibo 38% at 6.8940 or Fibo 50% at 6.8885 to get into a long position for 6.9290. Stop should be placed below 6.8730.

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