US Dollar Pressuring Yuan as USD/CNH Breaks Year-Long Trendline
The US Dollar is making a move against the Chinese Yuan after months of consolidation.
USD/CNH took out a year-long falling trendline, as well as the 6.3941 - 6.4107 resistance zone. This marks the highest close since October. Further upside confirmation could perhaps hint at a turning point for the almost 2-year long downtrend.
A bullish crossover between the 20- and 50-day Simple Moving Averages (SMAs) remains in play. These lines could come into play in the event prices turn lower, holding as key support.
The breakout has exposed the September high at 6.4880. Negative RSI divergence does show that upside momentum is fading, so keep an eye on the trendline. The latter could hold as new support in the event of a turn lower.
USDCNH
USD/CNH took out a year-long falling trendline, as well as the 6.3941 - 6.4107 resistance zone. This marks the highest close since October. Further upside confirmation could perhaps hint at a turning point for the almost 2-year long downtrend.
A bullish crossover between the 20- and 50-day Simple Moving Averages (SMAs) remains in play. These lines could come into play in the event prices turn lower, holding as key support.
The breakout has exposed the September high at 6.4880. Negative RSI divergence does show that upside momentum is fading, so keep an eye on the trendline. The latter could hold as new support in the event of a turn lower.
USDCNH
