Talking Points:
- USD/CNH trading between the 6.7 handle resistance and 6.6500 support
- Uptrend may suggest that the 6.7 handle could be put to the test again
- A break below 6.6500 might put the focus on the 6.6 handle
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The US Dollar is trading sideways versus the Chinese Yuan in offshore trade for the last couple of trading days, 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 following the vote, and have since traded between the 6.7 handle as resistance and the 6.5000 level on what appears to be “resistance turned support” basis.
The fact that the pair has managed to find support at 6.6500 in the context of an uptrend might imply focus will be out on the 6.7 figure, while the next resistance level may 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: July 4, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@dailyfx.com
