USD/CNH is trading below 7 for the first time since Aug. 5.
The offshore Yuan (CNH) is being quoted less than 7 per US dollar for the first time since Aug. 5 and there is scope for further appreciation, as per the USD/CNH technical chart.
The pair closed below the 100-day moving average (MA) on Tuesday, bolstering the already bearish setup, as represented by the head-and-shoulders breakdown, descending 5- and 10-day MAs, and a below-50 reading on the relative strength index.
Note that the pair has found acceptance below the 100-day MA for the first time since early May and now looks set to test support at 6.9617 (July 6 high).
As of writing, the USD/CNH pair is trading at 6.9985.
Daily chart
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Trend: Bearish
Technical levels
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