USD/CNH 1H Chart: Pair remains near channel
The US Dollar’s movement against the Chinese Yuan during the past six weeks has been guided by a descending channel. The pair was trading along its bottom line last week and thus fell to its four-month low of 6.4715; however, it did eventually gain strength on Monday.
Following a test of the 6.54 mark, the Greenback initiated a new wave down—a move was disrupted by the 55-hour SMA. Given that the pair remains testing this line for several hours, it might be finally breached within this session. A subsequent fall, however, should be stopped by the 100– and 200-hour SMAs and the 23.60% Fibo retracement near 6.5050.
The steepness of the senior channel suggests that it could be breached during the next week. A surge might follow, thus setting the 6.55 area as a near-term target and 6.57—for a longer term.
Following a test of the 6.54 mark, the Greenback initiated a new wave down—a move was disrupted by the 55-hour SMA. Given that the pair remains testing this line for several hours, it might be finally breached within this session. A subsequent fall, however, should be stopped by the 100– and 200-hour SMAs and the 23.60% Fibo retracement near 6.5050.
The steepness of the senior channel suggests that it could be breached during the next week. A surge might follow, thus setting the 6.55 area as a near-term target and 6.57—for a longer term.