Talking Points:
- 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
- Short term support at 6.6860 appears to act as resistance at the time of writing
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The US Dollar is testing possible resistance versus the Chinese Yuan in offshore trade, as the 6.6860 short term support level appears to have turned resistance.
The last two trading days seem to have seen highs halt at 6.6860 with impressive accuracy, which could imply that the level might have significance for short term momentum.
A hold below 6.6860 may put the focus on the 6.6500 level which could potentially act as support again.
A hold above 6.6500 appears crucial from a technical perspective in order to see that the bulls are still in control. A break below the level might imply that the 6.6 handle could be tested.
A move above 6.6860 seems likely to have eyes at the 6.7 handle initially for possible resistance.
USD/CNH Daily Chart: July 25, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@dailyfx.com
