USD/CNH Technical Analysis: Pair Remains Elevated Ahead of US NFPs
- USD/CNH surged to 6.7 after 6.6500 held on a retest
- The short term hold above 6.6860 might be indicative of a tentative breakout attempt
- US NFPs seem likely to be the determinant for a break or reversal at this stage
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The US Dollar remains elevated versus the Chinese Yuan in offshore trade, after the pair surged to the 6.7 handle in recent weeks.
The pair is having difficulties cracking the 6.7 level at this time, but as mentioned in the last report, focus shifted to 6.6860 for a potential higher hold, which raises the probability of an imminent breakout attempt.
Indeed, a strong US NFP number seems likely to see the pair clear the 6.7 level and a hold above might potentially expose the January high at 6.7584.
Suffice it to say, a move to the downside may target the 6.6500 level again for support, followed by the July lows at 6.6224.
USD/CNH Daily Chart: September 2, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
Follow him on Twitter at @OdedShimoni