USD/CNH New Higher High Indicates Reversal!

USD/CNH New Higher High Indicates Reversal!

USD/CNH registered a new higher yesterday by closing at 6.5746 above 6.5625 former high. Technically, the pair tries to develop a new uptrend, a bullish reversal after breaking above the major downtrend line.

The currency pair may resume its upside movement, the uptrend, if the US economic data continues to come in line with expectations or better during the week. Today, the US Consumer Confidence could boost the greenback if the indicator jumps from 91.3 to 96.9 points as expected.

USD/CNH Daily Chart Analysis!

USD/CNH jumped above the R2 (6.5708) static resistance and now is struggling to confirm this breakout. Stabilizing above 6.5625 and beyond the R2 could indicate more gains ahead.

Jumping and consolidating above the 23.6% retracement level is seen as a long opportunity. A valid breakout above this level could announce a bullish momentum towards the 38.2% retracement level, or higher if the US Dollar Index continues to increase.

Conclusion

The bullish bias remains intact as long as the pair stands above the black uptrend line. Consolidating here above the R2 (6.5708) or above the 23.6% could offer us a long opportunity.

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Author : Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.