USD/CNH 1H Chart: Breakout from junior channel
A channel down has confined USD/CNH for the last three months, while a junior channel was formed a four weeks ago. As apparent on the chart, the US Dollar tested the 6.2815 mark yesterday - its lowest level since mid-2015. The upper boundary of the junior formation was breached on the same day.
The Greenback has since retraced from this line and remained stranded between the weekly PP and S1 Technical indicators are still in favour of another decline, given that the northern barrier is set by the 55-, 100– and 200-hour SMAs and the weekly PP circa 6.31.
However, the US Dollar should gain strength within the following days, breach this area and eventually get ready for a medium-term advance towards the senior channel located in the 6.38/42 area.
The Greenback has since retraced from this line and remained stranded between the weekly PP and S1 Technical indicators are still in favour of another decline, given that the northern barrier is set by the 55-, 100– and 200-hour SMAs and the weekly PP circa 6.31.
However, the US Dollar should gain strength within the following days, breach this area and eventually get ready for a medium-term advance towards the senior channel located in the 6.38/42 area.