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USD/CNY fades drop to 6.74, focus on today’s close

7/23/2018, 11:33:45 AMMarket Analysis
USD/CNY fades drop to 6.74, focus on today’s close

The oversold Chinese Yuan extended Friday’s gains in early trade, but the resulting dip in the USD/CNY to 6.74 was short-lived. 

At press time, the currency pair is trading at 6.7639 - down 0.68 percent from the 12-month high of 6.8106 hit on Friday. 

A close today below 6.7650 (Friday’s low) would add credence to Friday’s inverted bearish hammer candle and would confirm a short-term bullish-to-bearish trend change. 

Meanwhile, a close above 6.7832 (July 19 high) would open doors for a re-test of Friday’s high of 6.8106.

USD/CNY Technical Levels

Resistance: 6.7832 (July 19 high), 6.8106 (Friday’s high)

Support: 6.7401 (session low), 6.7168 (July 3 high)