- 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
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)