USD/CNH Technical Analysis: Pair Holding 6.5500 Support
- USD/CNH is currently above the 6.5500 support
- A successful hold above the level might initially target 6.6000
- Major confluence support zone seems to lurk below at around 6.5000
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The US Dollar is in moving sideways versus the Chinese Yuan in offshore trade, as price currently trades above the 6.5500 support.
Price spiked down June 3 following the release of the US Non-farm Payrolls, but has since appeared to have quickly rejected prices below 6.5500.
If price successfully manages to hold above 6.5500, it might initially expose the 6.6000 resistance. A break above 6.6000 may put the focus on the February 3 high around 6.6500.
With that being said, a failure to hold above 6.5500 could put the spot light on a major support confluence zone (marked blue) that combines the 6.5000 handle, 200 day SMA, trend line from October 2015, and the 6.47446 level, which is the 0.382 Fib from the long term up trend as marked from the 2014 low at 6.0150.
Suffice it to say, a break below that level may prove significant and might indicate that a shift has taken place in the market to a more bearish sentiment.
USD/CNH Daily Chart: June 6, 2016
--- Written by Oded Shimoni, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.