Talking Points:
- USD/CNH held below short term support at 6.6860
-The failure to trade higher might put focus on possible support at 6.6500
- FOMC rate decision could prove volatile for the pair
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The US Dollar is trading lower versus the Chinese Yuan in offshore trade, as the 6.6860 level held as resistance.
As was mentioned in the prior report, the 6.6860 resistance level continued to hold with impressive accuracy, implying that technically short term focus might be put on the 6.6500 level for possible support.
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 may imply that the 6.6 handle could be tested.
With that said, the FOMC rate decision today seems likely to increase volatility, which might see short term levels break.
A move above 6.6860 could have eyes at the 6.7 handle initially for possible resistance, followed by the January high around 6.7584.
USD/CNH Daily Chart: July 27, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@dailyfx.com
