USD/CNH Broke Above Major Resistance Trend Line
USD/CNH extended its upside movement from 6.4412 to as high as 6.6777, breaking through a major bearish trend line on its daily chart, confirming that the bearish movement from 6.8588 had completed at 6.4412 already.
USD/CNH Daily Chart
On the upside
There is a bullish trend line with support at around 6.6490 on the 4-hour chart. As long as the price is above the trend line, the upside movement from 6.4412 could be expected to continue and next resistance level would be at 6.7210. Move through here if seen could trigger further upside move targeting next resistance level at 6.8588, followed by 6.9170.
USD/CNH 4-hour Chart
USDCNH 4-hour Chart
On the downside
A clear break below the trend line on the 4-hour chart could bring price back to test 6.6362 key support. Below this level would suggest that the short term uptrend from 6.4412 is complete, then the following correction pullback could take price to next support level at 6.5561. Break though this level would aim 6.5200 area.
For long term analysis
The USD/CNH pair is in long term uptrend from 6.0152, the fall from 6.9867 is likely correction of the uptrend. Another rise towards 7.0000 important psychological level is possible over the next several months.
USD/CNH Weekly Chart
USDCNH Weekly Chart
Support levels: 6.6490 (the bullish trend line on the 4-hour chart), 6.6362 (the key support), 6.5561 (the September 21 low), 6.5200, 6.4412 (the September 8 low).
Resistance levels: 6.7210 (the June 1 low), 6.8588 (the June 26 high), 6.9170 (the important resistance on the daily chart), 6.9867 (the January 3 high), 7.0000 (the important psychological level).