USD/CNH technical analysis: Looks north with falling channel breakout

• USD/CNH's daily chart shows a bearish channel breakout.
• A break above 6.90 looks likely.

The path of least resistance for USD/CNH is on the higher side, technical charts indicate.

The pair closed at 6.8834, confirming a falling channel breakout. The pattern indicates the pullback from June's high of 6.9618 has ended and the bulls have regained control.

So, the doors look open for a test of 6.90 (July 3 high). A break above that level would invalidate bearish lower highs pattern and reinforce the bullish view put forward by the channel breakout and could yield rise to 6.9618.

The bullish case would weaken if the pair finds acceptance below the July 11 low of 6.8610.

Daily chart

Trend: Bullish

Pivot points