- USD/CNH’s daily chart shows symmetrical triangle breakout.
- The breakout is backed by bullish readings on key indicators.
USD/CNH gained ground on Friday as the escalating US-China tensions over Hong Kong weighed over the offshore Yuan.
The pair closed at 7.1452, confirming an upside break of the daily chart symmetrical triangle represented by trendlines connecting May 4 and May 18 highs and May 8 and May 20 lows.
The triangle breakout has bolstered the bullish view put forward by the falling channel breakout confirmed on May 1 and suggests scope for a test of the 2019 high of 7.1952. The breakout is backed by an above-50 or bullish print on the 14-day relative strength index (RSI).
On the lower side, an acceptance under 7.10 (last week’s low + 50-day simple moving average) would shift risk in favor of a drop to the psychological support of 7.00.
At press time, the pair is trading largely unchanged on the day at 7.1522.
Daily chart
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Trend: Bullish
Technical levels
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