USDCNH’s bullish movement from the June 1 low of 6.7210 extended to as high as 6.8583 and broke above the key resistance at the March 15 low of 6.8450, suggesting that the long term uptrend from the January 2014 low of 6.0152 has resumed.
On the upside
The USDCNH pair stays above the bullish trend line from 6.7210 to 6.7707, with support at around 6.8135 on its 4-hour chart, indicating that the pair remains in the uptrend from 6.7210. As long as the trend line support holds, the bullish move could be expected continue and next target would be at the horizontal trend line of the triangle pattern on the daily chart at around 6.9170. If this level gives way, the following upside movement could take price to the important psychological level of 7.0000.
On the downside
Near term support level is at 6.8320, a breakdown this level could take price back to the ascending trend line on the 4-hour chart. A clear break below the trend line support will indicate that the short term uptrend from 6.7210 had completed at 6.8583 already, then a correction pullback could be seen, and the target would be at the 61.8% Fibonacci retracement taken from 6.7210 and 6.8583 at around 6.7735.
Technical levels
Support levels: 6.8320 (near term support), 6.8135 (the trend line on 4-hour chart), 6.7735 (the 61.8% Fibonacci retracement), 6.7210 (the June 1 low).
Resistance levels: 6.8450 (the March 15 low), 6.9170 (the horizontal trend line of the triangle pattern on the daily chart), 6.9867 (the January 3 high), 7.0000 (the important psychological level).