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USD/CNH Technical Analysis: Decline Might Be Seen As a Correction

USD/CNH Technical Analysis: Decline Might Be Seen As a Correction

Oded Shimoni, Junior Currency Analyst

Talking Points:

- USD/CNH is nudging lower today prior to reaching the 6.7 handle

- The 6.6500 level may potentially act as support for further upside momentum

- A break below 6.6500 may put the focus on the 6.6 handle again

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The US Dollar is nudging lower versus the Chinese Yuan in offshore trade (at the time this report was written), after the pair saw a significant surge higher following the “Brexit” decision.

The pair blasted through the 6.6 handle and the 6.6500 resistance, and now the next level of significance appears to be the 6.7 handle. The decline today might be seen as a correction in the context of the strong buying pressure, which may imply that focus could be put on the 6.6500 for possible support.

If the levels holds, this appears likely to put the focus on the 6.7 figure, while the next resistance might be found around the January high at the 6.7584 level.

A move below 6.6500 may put the focus again on the 6.6 handle for possible support, followed by the 6.5500 level.

USD/CNH Daily Chart: June 29, 2016

USD/CNH Technical Analysis: Decline Might Be Seen As a Correction

--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com

To contact Oded Shimoni, e-mail instructor@dailyfx.com

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

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