USD/CNH Technical Analysis: Pair Could Test 6.6500 Next
- USD/CNH broke below the 6.7 handle and short term support at 6.6860
-The failure to hole above might put focus on possible support at 6.6500
- A hold above 6.6500 could signal that the bulls are still in control
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The US Dollar is trading lower versus the Chinese Yuan in offshore trade as the pair broke below key support levels at the 6.7 handle and 6.6860.
As we mentioned in the prior report, price failing to hold above 6.7 and 6.6860 might put the focus on the 6.6500 level which could potentially act as support again.
A hold above the level appears crucial from a technical perspective in order to see that the bulls are still in control. A break below the level may imply that the 6.6 handle could be tested.
A move higher seems likely to have eyes at the 6.7 handle for possible resistance.
USD/CNH Daily Chart: July 21, 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.