The US Dollar has continued to lose ground against the rest of the currencies. The USD/CNH pair is no exception to this event. However, there is one interesting aspect to the decline of the Buck against the Chinese Yuan.
The currency pair recently stopped its decline and began to trade sideways. The move was initiated by a combined support of the lower trend line of junior channel down pattern, weekly S1 and monthly S2. All of these support levels are located in a range from 6.4200 to 6.4290.
Meanwhile, resistance is provided by the 61.80% Fibonacci retracement level at the 6.4480 mark.
The pair is likely to trade sideways until it reaches the resistance of the channel. Afterwards, the decline should resume.
The currency pair recently stopped its decline and began to trade sideways. The move was initiated by a combined support of the lower trend line of junior channel down pattern, weekly S1 and monthly S2. All of these support levels are located in a range from 6.4200 to 6.4290.
Meanwhile, resistance is provided by the 61.80% Fibonacci retracement level at the 6.4480 mark.
The pair is likely to trade sideways until it reaches the resistance of the channel. Afterwards, the decline should resume.