Search ForexCrunch
  • The offshore Yuan is under pressure as of writing, as the US tariffs on Chinese imports are set to take effect at 0401 GMT.
  • The hourly chart shows USD/CNH has created a bear flag – a bearish continuation pattern, meaning a break below 6.6475 (flag support) would signal a resumption of the sell-off from the recent high of 6.7329 and open up downside towards 6.5621 (target as per the measured height method).
  • The bear flag breakdown would also add credence to extreme overbought conditions as highlighted by the 14-day relative strength index (RSI).

Hourly chart

Spot Rate: 6.6670

Daily High: 6.6695

Daily Low: 6.6514

Trend: Downside break of the bear flag would be bearish

Resistance

R1: 6.6726 (hourly chart hurdle)

R2: 6.6952 (July 2 high)

R3: 6.7329 (July 3 high)

Support

S1: 6.6475 (bear flag support)

S2: 6.6323 (200-hour moving average)

S3: 6.60 (psychological support)