USD/CNH Technical Analysis: Failure to Hold Above the 6.7 Handle
- USD/CNH failed to hold above 6.7000 after a one day close higher
- Pair finding possible short term support at around 6.6860
- A move lower could see potential support at 6.6500
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The US Dollar is seeing a nudge lower versus the Chinese Yuan in offshore trade, as the pair failed to hold above the 6.7 handle after a one day close higher.
The pair blasted through the 6.6 handle and the 6.6500 resistance following the “Brexit” vote, but has since failed to see continued upside momentum above the 6.7 handle resistance.
At this stage, it seems as if the pair might have found a short term support around the June 28 close at about 6.6860, which appears to present a clean technical picture:
Conviction above the 6.7000 level might put the focus on potential resistance at the January high around 6.7584.
If the pair fails to hold above 6.6860, it appears technically likely to see further possible corrective losses, and the 6.6500 might act as support again. If the 6.6500 level holds, this may imply that the bullish “structure” is still intact.
USD/CNH Daily Chart: July 15, 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.