USD/CNH Technical Analysis: Pair Trading at New Highs
- Pair broke key resistance at the January 7 high around 6.7584
- Breakout above the 6.7000 handle paved the way for an explosive upside move
- Pullback to support might initiate further buying
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The US Dollar is trading higher versus the Chinese Yuan in offshore trade, as the pair broke key resistance levels to post new highs.
The pair surged higher after breaking resistance around the 6.7 handle which we highlighted for the past couple of months; a break that shifted focus to the 2016 January high at the 6.7584 level, which was cleared as well on strong US Dollar momentum.
The next major resistance level seems to be the 6.8 handle, while potential levels of support could be 6.7584 followed by the area below 6.7400 and the 6.7 handle.
At this point in time moves to the downside might still be interpreted as corrective as long as buyers can keep price above the 6.7 level.
USD/CNH Daily Chart: October 25, 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.