USD/CNH: The dollar bounces back against a fragile yuan

USD/CNH may reach its recent high of 7.26 in the short term

From a technical analysis perspective, the trend in USD/CNH is unmistakably bullish. The exchange rate has recently corrected some of its summer gains, but appears to be resuming its upward trend since the start of the week, where it bounced back from major psychological support at 7:00 AM.

The risk/reward ratio is in favor of purchases above this threshold. USD/CNH could quickly rise to its recent high around 7.26 before setting new highs.

This bullish outlook would be invalidated in the event of a pullback below the weekly low.

Access: Purchase over 7.10

Stop: 7.00

Target: 7.26, then 7.50

Risk/reward ratio: >1

Follow the development in the price of USD/CNH with IG.

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