USD/CNH Technical Analysis

Despite the numbers showing higher inflation than expected for the US dollar, it ended flat against the Chinese Yuan this Thursday. After a very long downtrend since the beginning of the Covid-19 pandemic, the Dollar could gain some upward momentum in the next few days against the Chinese Yuan as it is now sitting at an important support area, around 6.36 and 6.38. The next week will be decisive for the dollar, because of the FOMC report, due on Thursday. This report will bring clues on where the monetary policy is headed. Until then, the market is likely to keep moving in a narrow range. From a technical point of view, as the price is near a support area, an ignition candle should take the price all the way up to the 6.5000 level in a couple of weeks.