USDCNH pair is trending higher since the end of last month with clear areas of support and resistance. China has announced that it will lower taxes on traded goods. A break above near term resistance at 6.6863, which is also the 4 hour 50 period moving average, may attract buyers and give an opportunity for price to travel back to the rising resistance trend line. The line comes in just above the recent highs at 6.8943, but remains below 6.9000 for now. If price can advance beyond these levels it may try to quickly move up to 6.9600.
Support is featuring around the 100 and 200 period MAs at 6.8540. A move lower could find support at 6.8433 and its higher lows. The rising support trend line is located at 6.8390 with a loss of this line signalling that sellers are taking control. The last touch on the line came in at 6.8228 and this level may be supportive. If price falls further then the lows at 6.7820 will come into focus.
With Brexit negotiations ongoing and EU leaders meeting in Salzburg, GBPJPY is proving an interesting pair to look at. The Japanese government is also making the news with PM Abe securing his position and set to meet with US President Trump to discuss trade on the 25th of September. Price action has broken higher and retested the falling trend line as support. The resistance above can be seen at 149.342 followed by the 150.000 area. A break above this zone would point to higher levels with potential resistance at 151.000 followed by the April highs at 153.835. The February high came in at 156.622.
Support is now found at the trend line, currently around 147.500 followed by 147.000 and the point of control. Under this line the 145.978 area may support price. A loss of this zone might result in a retest of the 50 and 100 period moving averages at 145.200 and 144.000 respectively. The May low acted as support at 143.217 and a drop in price to this area may find buyers. Below this zone the 140.000 level provides another area for buyers to consolidate their positions.