Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
USD/CNH Technical Analysis: Trying to Break August Top

USD/CNH Technical Analysis: Trying to Break August Top

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/CNH Technical Strategy: Flat
  • Yuan Back on the Defensive as Prices Try to Clear August Swing Top, Renew Uptrend
  • Absence of Actionable Trade Setup Calls for Patience Until Viable Opportunity Emerges

The US Dollar is attempting to renew upside momentum against the Chinese Yuan in offshore trade after a spike to four-month highs failed to hold up yesterday. Prices are flirting with the late August swing top once again, with confirmed breakout opening the door for resumption of the long-term uptrend set from January 2014.

Near-term resistance is at 6.5254, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a test of the 100% level at 6.5596. Alternatively, a reversal back below the 61.8% Fib at 6.5043 clears the way for a challenge of the 50% expansion at 6.4872.

An actionable trade setup is absent at this point. On one hand, prices are too close to resistance to justify a long position from a risk/reward perspective. On the other, the absence of a defined bearish reversal signal warns against taking up the short side. We will remain on the sidelines for now, waiting for a more compelling setup to present itself.

Losing Money Trading Forex? This Might Be Why.

USD/CNH Technical Analysis: Trying to Break August Top

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES