USD/CNH technical analysis: Rises 0.22%, confirming falling channel breakout
|- USD/CNH's 4-hour chart is reporting a falling channel breakout or a revival of the rally from 6.85.
- The pair could soon revisit the recent high of 7.1396.
Another wave of CNH selling could soon hit the market as the USD/CNH technical charts are reporting a bullish breakout.
For instance, the pair has jumped 0.22% to levels above 7.08 today, confirming an upside break of the falling channel on the 4-hour chart.
The breakout indicates the correction from the Aug. 5 high of 7.1396 has ended and the rally from lows near 6.85 seen in July has resumed.
So, the pair could retest 7.1396 in the next couple of days. The bullish case would weaken if the pair finds acceptance below the previous day's low of 7.0547, although, as of writing, that looks unlikely.
The minutes of Federal Reserve's July meeting released on Wednesday validated Chairman Powell's reluctance to start a full-blown easing cycle. Hence, the USD is expected to remain bid during the day ahead.
4-hour chart
Trend: Bullish
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.