USDCNH | Perspective for the new week | Follow-up details

FX:USDCNH   U.S. Dollar/Chinese Yuan
After been stopped out of the bearish expectation on my last speculation on this pair (see link below for reference purposes); the price found bullish potentials as it broke out of descending channel to find a new high.
Despite the new digital yuan tendency of increasing the international usage of China’s national fiat, I am of the opinion that the positive momentum noticed during the Breakout of Bullish rectangle (CNY6.45000 and CNY6.50000 range) on the 27th of July 2021 is a bullish sign and has the potential of extending to the CNY6.5500 level and beyond in the next couple of weeks.

Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Channel
Observation: i. CNY6.5000 level which has been a significant zone that resisted price action in the last 3 months was finally broken with a bullish engulfing candle and I suppose this event reveals a bullish momentum building up behind the scenes.
ii. Bullish Rectangle: In the last 40days, the price has been moving between horizontal support and resistance levels (CNY6.45000 and CnY6.50000), a feat indicating there has been no trend.
iii. The Breakout of the rectangle on the 27th of July is presently considered a false one considering the two bearish engulfing candles that followed it.
iv. Despite the bearish run following the breakout, price is still contained within the rectangle hereby fortifying hopes of a second breakout.
v. Above Key level @ CNY6.46000 remains a comfortable zone for selling the Chinese Yuan in the coming week with possibilities of the second breakout of CNY6.495000 welcoming an opportunity to add a position.
vi. I have also noticed that since finding a bottom @ CNY6.35000, there is the appearance of an Ascending channel where price formed two positive sloping trend lines drawn above and below a price series (resistance and support levels) detailing an uptrend in price.
vii . It is also worthy to note that, the Key level @ CNY6.46000 is a significant level for bullish momentum as it has a memory for buying power as far back as 2016 (see weekly chart below).
viii. A further Breakdown/Retest of CNY6.53000 might welcome addition to the existing position... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 800 pips.
Risk/Reward: 1:4
Potential Duration: 7 to 15days

NB: This speculation might be considered to make individual decisions on the lower timeframe.

Watch this space for updates as price action is been monitored.

Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Comment: Monthly perspective