USD/CNH Technical Analysis: triangle breakout likely

Omkar Godbole FXStreet Contributor

The USD/CNH pair (offshore yuan exchange rate) has created a narrowing price range or a contracting triangle on the hourly chart.

Hourly chart

The 50-hour moving average (HMA) is holding above the 200-HMA and is trending north in favor of the bulls. The ascending triangle breakout on the 14-hour relative strength index (RSI) also indicates that the path of least resistance is on the higher side.

USD/CNH, therefore, is likely to confirm a bullish breakout with a convincing move above the upper edge of the triangle, currently at 6.8075. That would open up upside toward 6.8450 (Dec. 5 low).

Trend: bullish above 6.8075

USD/CNH

Overview:
    Today Last Price: 6.8056
    Today Daily change: 0.0046 pips
    Today Daily change %: 0.07%
    Today Daily Open: 6.801
Trends:
    Daily SMA20: 6.8327
    Daily SMA50: 6.8802
    Daily SMA100: 6.8907
    Daily SMA200: 6.7339
Levels:
    Previous Daily High: 6.8088
    Previous Daily Low: 6.7917
    Previous Weekly High: 6.8098
    Previous Weekly Low: 6.7396
    Previous Monthly High: 6.9509
    Previous Monthly Low: 6.826
    Daily Fibonacci 38.2%: 6.7982
    Daily Fibonacci 61.8%: 6.8023
    Daily Pivot Point S1: 6.7922
    Daily Pivot Point S2: 6.7834
    Daily Pivot Point S3: 6.7751
    Daily Pivot Point R1: 6.8093
    Daily Pivot Point R2: 6.8176
    Daily Pivot Point R3: 6.8264

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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