USD/CNH technical analysis: Looks north with falling channel breakout

USD/CNH's daily chart shows a bearish channel breakout.
A break above 6.90 looks likely.

Omkar Godbole FXStreet Contributor

The path of least resistance for USD/CNH is on the higher side, technical charts indicate.

The pair closed at 6.8834, confirming a falling channel breakout. The pattern indicates the pullback from June's high of 6.9618 has ended and the bulls have regained control.

So, the doors look open for a test of 6.90 (July 3 high). A break above that level would invalidate bearish lower highs pattern and reinforce the bullish view put forward by the channel breakout and could yield rise to 6.9618.

The bullish case would weaken if the pair finds acceptance below the July 11 low of 6.8610.

Daily chart

Trend: Bullish

Pivot points

1. R3 6.8952
2. R2 6.8899
3. R1 6.8871
PP 6.8817
1. S1 6.8789
2. S2 6.8735
3. S3 6.8707

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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