The US Dollar has been depreciating against the Chinese Offshore Renminbi since the beginning of September when the USD/CNH currency pair reversed south from the upper boundary of the rising wedge pattern.
Note that the exchange rate is supported by the 55-, 100– and 200-hour moving averages, currently located in the 7.0987/7.1185 range. Thus, it is likely that some upside potential could prevail in the market. Important level to look out for is the 2019 maximum at 7.2000.
However, from a theoretical perspective, it is likely that the currency pair could continue to trade downwards, as it should target the lower pattern line located in the 7.0000/7.1200 range.
