USD/CNH 4H Chart: Pair consolidates in triangle
The US Dollar keeps diminishing its trading range against the Chinese Yuan since the beginning of this year. As a result, the rate has formed a symmetrical triangle and is therefore consolidating slightly above its 2016/2018 low of 6.2570.
Even though the US Dollar has managed to push slightly away from this territory, its inability to overcome the 6.37 mark might still point to another decline. This assumption is likewise confirmed by strongly bearish technical indicators in both shorter– and longer-term time-frames.
If the given pattern is breached to the downside, the pair is likely to target the aforementioned yearly low at 6.2570 during the following two weeks. In the meantime, a northern breakout of the current trend-line at 6.3250 could result in a surge towards the 6.40 area.
Even though the US Dollar has managed to push slightly away from this territory, its inability to overcome the 6.37 mark might still point to another decline. This assumption is likewise confirmed by strongly bearish technical indicators in both shorter– and longer-term time-frames.
If the given pattern is breached to the downside, the pair is likely to target the aforementioned yearly low at 6.2570 during the following two weeks. In the meantime, a northern breakout of the current trend-line at 6.3250 could result in a surge towards the 6.40 area.