USD/CNH Technical Analysis: Approaching Possible Resistance
- USD/CNH appears to target the 6.6000 resistance level
- A break above 6.6000 might put the focus on the 6.6500 level
- Major confluence support zone seems to rest at about 6.5000
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The US Dollar is trading higher versus the Chinese Yuan in offshore trade, as price appears to approach the 6.6000 resistance level.
Price spiked down June 3 following the release of the US Non-farm Payrolls, but the US Dollar has since recouped its losses versus the Yuan after finding support at 6.5500.
If price maintains its momentum and breaks above 6.6000, it might initially expose possible resistance at the February 3 high around 6.6500.
With that being said, a move lower could retest prior support at 6.5500. A break below that level 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.
USD/CNH Daily Chart: June 10, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.