Talking Points:
- USD/CNH failed to break above 6.7 resistance, currently above 6.6860
- The pair found a bid from short term support at 6.6700
- For bulls to really be in control, the 6.7 level may need to be cracked
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The US Dollar is trading higher versus the Chinese Yuan in offshore trade, as the pair currently sits above prior support at 6.6860.
As we mentioned in the last report, the pair found support above the last short term swing high (~6.6700), and formed a “bullish engulfing bar”, suggesting another potential attempt for the key 6.7000 handle.
Indeed, the pair is trading in proximity to that key level, after pivoting around 6.6860, but real bullish conviction might require a break and a hold above the 6.7 handle.
A move lower may shift focus to 6.6500 as a major line of defense in the near term, with the 6.6700 level offering potential interim support.
USD/CNH Daily Chart: September 13, 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
