Technical Analysis

USDCNH is making a new session high (and high for the year)

USDCNH trades at highest level since November 30th

The USDCNH has moved to a new session high and in the process has moved above the December 2019 high at 6.92399 and trades at the highest level since November 30, 2018.  The off shore yuan has been weakening since the middle of April low at 6.6754.  A weaker yuan helps to offset some of the hurt from the tariffs. The high from the end of October 2018 reached 6.98021. 

Drilling to the hourly chart below, the pair has been forming a bull flag/pennant over the last few days.. The break above gives the buyers the confirmation.  Staying above the trend lines are risk now for the buyers.

The bull flag has been broken, giving buyers the needed push to extend higher.

ForexLive

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