USDCNH: We believe it may be running into an area of resistance

Market reaction: Risk-off mood was elevated across the board. Particularly AUDUSD and AUDJPY down more than 0.5%, Copper down more than 3.0% and USDCNH rose more than 0.70% at one point in an early Asian session.

USDCNH: The cross again fails to breach the July 02 on Wednesday’s Asian session. We believe it may be running into an area of resistance defined the following:

• The 61.8% fib reaction seems to be at 6.7000 (Jan 2017 high-March 2018 low)
• The parallel resistance zone appears between 6.7160-6.7230
• Traced out a double top between 6.9950-6.6862
• The daily studies RSI and the oscillator are remaining bearish
• Overall supply zone spread between 6.7000-6.7230
On a monthly basis, a recovery back above 6.7640 Jan 2016 high seems hard. In this case, this would point a new downward wave towards 6.6130-6.6000.