Talking Points:
– USD/CNH trading above 6.6500
– Retest of either 6.6500 or 6.6860 could prove more telling ahead
– Further upside conviction might require a clear break and a hold above 6.7000
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The US Dollar is trading higher versus the Chinese Yuan in offshore trade, as the pair moved above the 6.6500 technical level, which failed to hold as resistance.
At this stage, the pair is back inside the short term range between 6.7 and 6.6500, appearing slightly indecisive, but trend is clearly still up.
A retest and a hold above 6.6500 may provide an entry opportunity for bulls, but a break lower might put the focus on the 6.6 handle for potential support.
Continued upside momentum seems likely to have eyes on 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 levels- unlike the last attempts.
USD/CNH Daily Chart: August 8, 2016
— Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail oshimoni@dailyfx.com
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