The U.S. labour market data that was announced last Friday exceeded expectations. Therefore, the US Dollar is attempting recovery, and the Friday’s black candlestick pattern confirms this. But let’s remember that, as usual, the positions are fixed before the weekend.
In the daily chart, we have an ascending channel drawn in two points. Since this channel has a very steep slope, not only the price can pull back from it, but it can also have a strong breakdown. In this case, a possible approach would be to wait for the candlestick patterns to form, and then open long or short positions:
The offshore Yuan approached the support zone of 6.7189-6.7231:
As it can be seen in the daily chart, the price has touched our support are with an engulfing, therefore we could try to buy the pair at a market opening or away from the middle point of engulfing:
Buy 6.7344, SL=6.7100, TP=6.8100 or from the middle point of the engulfing
Buy Limit 6.7295, SL=6.7100, TP=6.8100.
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