USD/CNH could reach its recent high at 7.26 in the short term
From a technical analysis perspective, the trend of USD/CNH is unmistakably bullish. The exchange rate has recently corrected some of its summer surge, but looks set to resume its uptrend since the start of the week, rebounding from major psychological support at 7.00.
The risk/return ratio is in favor of purchases above this threshold. USD/CNH could quickly rally to its recent high at around 7.26 before setting new highs.
This bullish outlook would be invalidated in the event of a pullback below the low of the week.
Entry: Buy above 7.10
Stop: 7.00
Objective: 7.26, then 7.50
Risk/Reward Ratio: >1
Follow the evolution of the price of USD/CNH with IG.
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