Talking Points:
– USD/CNH held below 6.6500
– Pair finding support at the July lows around 6.6224
– Sideways trading seems to be the order of the day until a break to either side
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The US Dollar is trading sideways versus the Chinese Yuan in offshore trade, as the pair held below the 6.6500 technical level, but found support around the July lows at 6.6224.
The move higher from support might now shift focus again to 6.6500 for possible resistance. A break higher could expose prior resistance levels at 6.6860 and the 6.7 handle.
For bulls to really show strength, the price might need to break and hold above those recent highs.
A hold below 6.6500 may shift focus again to 6.6224 initially, followed by the 6.6 handle.
Sideways trading seems to be the order of the day until the pair manages to clear one of those short term tech levels.
USD/CNH Daily Chart: August 19, 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