USD/CNH Technical Analysis: Below 7.00 for first since Aug. 5

USD/CNH is trading below 7 for the first time since Aug. 5.

The offshore Yuan (CNH) is being quoted less than 7 per US dollar for the first time since Aug. 5 and there is scope for further appreciation, as per the USD/CNH technical chart.

The pair closed below the 100-day moving average (MA) on Tuesday, bolstering the already bearish setup, as represented by the head-and-shoulders breakdown, descending 5- and 10-day MAs, and a below-50 reading on the relative strength index.

Note that the pair has found acceptance below the 100-day MA for the first time since early May and now looks set to test support at 6.9617 (July 6 high).

As of writing, the USD/CNH pair is trading at 6.9985.

Daily chart

Trend: Bearish

Technical levels