USD/CNH Technical Analysis: nearing one-year high as Chinese Yuan continues to slide

• The US Dollar-Chinese Yuan pairing is clipping back into one-year highs after the US State Department specifically avoided outright labeling China a currency manipulator in their latest currency manipulation report, backing down off the US administration’s terse stance towards China and their activities in currency markets. The Yuan is celebrating by continuing to sag into extreme lows that were last set in January of 2017.
• As the pair remains heavily exposed to rapid shifts in market sentiment, the chance for solid technical barriers remains thin, but the 50- and 200-hour moving averages are tending towards the bullish side.
• Mid-August’s peak of 6.9586 remains the target for CNH short-sellers, and a repeated turnaround from the 7.0000 handle could see the pair roll over into another bearish cycle.

USD/CNH Chart, 1-Hour