The US Dollar has been trading in a triangle-like formation against the Chinese Yuan since mid-January. Along the way, the pair tested the lower boundary of a four-month channel down circa 6.26.
The Greenback likewise breached the prevailing junior channel yesterday. This suggests that the pair could retrace from the breached pattern and start edging higher later in the day towards the upper triangle line at 6.37, especially given the fact that the US Dollar is supported by the 55-, 100– and 200-hour SMAs and the weekly PP at 6.33.
On the other hand, technical indicators demonstrate that some downside potential still exists in the market. In case this bearish scenario occurs, the proposed fall should not exceed the 6.31 mark where the bottom triangle line is located.
The Greenback likewise breached the prevailing junior channel yesterday. This suggests that the pair could retrace from the breached pattern and start edging higher later in the day towards the upper triangle line at 6.37, especially given the fact that the US Dollar is supported by the 55-, 100– and 200-hour SMAs and the weekly PP at 6.33.
On the other hand, technical indicators demonstrate that some downside potential still exists in the market. In case this bearish scenario occurs, the proposed fall should not exceed the 6.31 mark where the bottom triangle line is located.