US Dollar Ready to Resume Rise Against the Chinese Yuan?
Following a few months of consolidation, the US Dollar seems to be making some upside progress against the Chinese Yuan.
Fundamentally speaking, a hawkish Federal Reserve and dovish People's Bank of China offer upside potential for USD/CNH. This also follows measures from China's government (about 1 trillion Yuan) to bolster the economy.
In response, USD/CNH is trying to confirm a breakout above the May high (6.8376). Key resistance seems to be the midpoint of the Fibonacci extension (6.8833).
Further gains place the focus on the 61.8% and 78.6% levels at 6.9460 and 7.0353 respectively.
Keep a close eye on the 20- and 50-day Simple Moving Averages (SMAs). These could reinstate the upside focus in the event of a turn lower.
USDCNH
Fundamentally speaking, a hawkish Federal Reserve and dovish People's Bank of China offer upside potential for USD/CNH. This also follows measures from China's government (about 1 trillion Yuan) to bolster the economy.
In response, USD/CNH is trying to confirm a breakout above the May high (6.8376). Key resistance seems to be the midpoint of the Fibonacci extension (6.8833).
Further gains place the focus on the 61.8% and 78.6% levels at 6.9460 and 7.0353 respectively.
Keep a close eye on the 20- and 50-day Simple Moving Averages (SMAs). These could reinstate the upside focus in the event of a turn lower.
USDCNH
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