USD/CNH: heading to test the 7 handle?

The USD/CNH has been marching higher since 2014 and looks to be heading to test the 7 handle. The 7 handle is near the 50% fib of the swing low move since the Yuan-US$ peg was removed and so this may affect some pull here.

USDCNH 4hr: I Tweeted last week to watch for any momentum-based triangle breakout on this pair and this was the chart from that Tweet:

This was how the pair finished for the week with price slowing as it neared the 7 handle but the momentum breakout did evolve:

USD/CNH 30 min: this time frame chart shows that a move of over 150 pips was available for this breakout move:

USD/CNH weekly: Prior to 2006 the Renminbi was pegged to the US$ and the chart below shows price action since this peg ceased. The 50% fib of this swing low move sits near the 7 handle and so this level may act as some form of attraction for price in coming sessions. Added to this, FWIW, the number 7 is lucky in both Chinese and Western culture:

There is a gap of about 300 pips between current price and the 7 handle and so this may prove to be a move that is worth monitoring:

Other FX pairs: a review of other FX pairs can be found through this link.

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