USD/CNH Technical Analysis: Falling wedge breakout, eyes recent highs

• The USD/CNH (offshore Yuan exchange rate) hourly chart shows a falling wedge breakout – a bullish continuation pattern, which indicates the rally from the June 14 low of 6.3828 has resumed.
• Thus, USD/CNH could revisit the  recent high of 6.7329 (July 3 high).
• The breakout was triggered by escalating US-CHina trade tensions.

Hourly chart

Spot Rate: 6.6809

Daily High: 6.6916

Daily Low: 6.6455

Trend: Bullish

Resistance

R1: 6.6916 (session high)

R2: 6.72 (May 2017 low)

R2: 6.7329 (recent high)

Support

S1: 6.6455 (session low)

S2: 6.5999 (previous day’s low)

S3: 6.5917 (4H 100MA)