USD/CNH to sink towards 6.4024/03 on a break below 6.4502/6.4461 support area – Commerzbank

According to Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, the USD/CNH pair is set to remain below 6.5292 and again targets support at 6.4502/6.4450 below which lies 6.4024/03.

See: USD/CNY to see substantial gains towards 6.70 by year-end – ING

Resistance comes in between the early July high at 6.5008 and the recent high at 6.5111

“USD/CNH’s recent attempt to reach the 6.5292 July high has been thwarted at its current August high at 6.5111 with the 6.4502/6.4461 support area being back in sight. It consists of the late June and July lows. Failure there would make us bearish and target the February and early May lows at 6.4024/03. Below this area lies the May trough at 6.3524. 

“Resistance now comes in between the early July high at 6.5008 and the recent high at 6.5111 and also at the July peak at 6.5292.” 

“Only a currently unexpected rise and daily chart close above the 6.5292 high would lead to the 78.6% Fibonacci retracement at 6.5374 being targeted. Above the latter the December and early March highs can be spotted at 6.5535/6.5635 and the March and April peaks at 6.5862/78.”