USD/CNH Technical Analysis: Recent Lows Could be Retested
- USD/CNH held below 6.6500 as resistance
- Focus might now shift to 6.6224 followed by the 6.6 handle for possible support
- Upside conviction may require a clear break and a hold above 6.7000
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The US Dollar is edging slightly lower versus the Chinese Yuan in offshore trade, as the pair held below the 6.6500 level as resistance for the last three trading days.
The hold below 6.6500 may now shift focus to possible support at a zone under the short term low at 6.6224, followed by the 6.6 handle.
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, the price might need to break and hold above those recent highs.
USD/CNH Daily Chart: August 16, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.