USD/CNH Technical Analysis: Pair Closing Above 6.7000
- USD/CNH closes above the 6.7 handle after four failed attempts
- Focus might be put on the January highs at 6.7584
- If the index fails to hold above 6.7, a move lower could see potential support at 6.6500
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The US Dollar is continuing its push higher versus the Chinese Yuan in offshore trade as the pair closed above the 6.7 handle on a daily basis after four failed attempts. The pair has failed to do so this past year, even when printing the January 2016 highs.
Price blasted through the 6.6 handle and the 6.6500 resistance following the “Brexit” vote, and has now cleared the 6.7 handle resistance, but follow-through might prove limited unless the pair manages to hold above the level.
The close above 6.7000 might put the focus on potential resistance at the January high around 6.7584.
If the pair fails to hold 6.7000, the 6.6500 may act as support again.
A move below that level might put the focus on possible support at the 6.6 handle.
USD/CNH Daily Chart: July 11, 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.