Talking Points:
- USD/CNH failed to break above the 6.7 resistance, fell below support at 6.6860
- The break below 6.6860 might shift focus to 6.6500
- Bullish conviction at this stage might require a break above 6.7
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The US Dollar is lower versus the Chinese Yuan in offshore trade, after the pair failed to hold above the 6.6860 support level highlighted in the last reports.
The pair had difficulties cracking the 6.7 level and the US ISM Services numbers provided a catalyst for a break of the short term support at 6.6860.
At this stage, the pair is finding some support around the last short term swing high and a move below that level might shift focus to 6.6500 as a major line of defense, followed by July lows at 6.6224.
If the pair manages to reverse this short term burst lower, a break and a hold above 6.7 might be required for any bullish conviction.
USD/CNH Daily Chart: September 7, 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
