USD/CNH Technical Analysis: Pair Finding Support After Fed Decline
- USD/CNH found support around 6.6500, formed a “Morning Star” bullish pattern
- Pair lost ground following the Fed Rate Decision, but recovered from 6.6700
- 6.7 remains the level to watch going forward
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The US Dollar is nudging higher versus the Chinese Yuan in offshore trade, after the pair lost some ground following yesterday’s Fed Rate Decision.
The pair formed a “Morning Star” bullish technical pattern around support at 6.6500, and saw continuation until hitting the 6.6860 resistance level mentioned in the last weeks.
The pair lost some ground from that area after the Fed, but is recouping losses after hitting the 6.6700 short term support level.
A break above resistance at 6.6860 might expose the 6.7 handle, which has thus far capped gains as resistance.
This makes the 6.7 key for any real bullish conviction, as a break higher might be required to signal a continuation of the bullish trend.
A break below 6.6500 seems likely to shift focus to the last swing low at 6.6224, which also coincides with a long term up trend line.
USD/CNH Daily Chart: September 22, 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.