USD/CNH Technical Analysis: Breakout Attempt Initiated
- USD/CNH testing the 6.6000 resistance level
- A clear move above 6.6000 and a hold may put the focus on the 6.6500 level
- Major confluence support zone beneath 6.5000 on a move lower
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The US Dollar is trading slightly higher today versus the Chinese Yuan in offshore trade (at the time this report was written), as price appears to maintain an attempt to break above resistance at 6.6000.
After finding support at 6.5500, the pair moved higher to test the 6.6000 for the last two trading days, but has yet to manage a clear break above on a daily close basis.
If price is able to break above 6.6000 and hold the level, it might initially expose possible resistance at the February 3 high around 6.6500.
However, a move lower may put the focus again on the 6.5500 prior support level.
A break below that level could put the spotlight 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 14, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.