Talking Points:
- USD/CNH pivoting around 6.6500
- A hold below 6.6500 may put focus on 6.6224 followed by the 6.6 handle
- Further upside conviction might require a clear break and a hold above 6.7000
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The US Dollar is trading sideways versus the Chinese Yuan in offshore trade, as the pair continues to pivot around the 6.6500 technical level, which failed to hold as support.
A hold below 6.6500 may shift focus to possible support at a zone under the short term low at 6.6224.
If the pair moves lower than that, it might find it difficult cracking the general area around the 6.6 handle with a longer term trend line running through just below.
On the other hand, upside momentum seems likely to have eyes on prior resistance levels at 6.6860 and the 6.7 handle.
For bulls to really show strength, price might need to break and hold above those levels- an attempt that may be in question at the moment as buyers from 6.6224 seemed to have failed swinging price higher at this time.
USD/CNH Daily Chart: August 12, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@dailyfx.com
Follow him on Twitter at @OdedShimoni
