USD/CNH technical analysis: Teasing rising wedge breakdown on 4H
|- USD/CNH's 4-hour chart shows a rising wedge pattern.
- A breakdown would imply a bearish reversal and open the doors for 6.95.
China's offshore Yuan (CNH) exchange rate could gain altitude as the USD/CNH's 4-hour chart shows the pair has formed a bearish pattern.
The bounce from recent lows near 6.95 has taken the shape of a rising wedge, which comprises of trendlines connecting higher lows and higher highs. The trendlines, however, are converging – a sign of buyer exhaustion.
As a result, a drop below the lower trendline (rising wedge breakdown) is considered a bearish reversal pattern.
Currently, the pair is trading around the rising wedge support at 7.03. A breakdown, if confirmed, would open the doors for a retest of a recent low of 6.95. On the way lower, the pair may find support at 7.00.
4-hour chart
Trend: Bearish
Technical levels
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.