USD/CNH Price Analysis: Symmetrical triangle breakout on daily chart

• USD/CNH's daily chart shows symmetrical triangle breakout. 
• The breakout is backed by bullish readings on key indicators. 

USD/CNH gained ground on Friday as the escalating US-China tensions over Hong Kong weighed over the offshore Yuan. 

The pair closed at 7.1452, confirming an upside break of the daily chart symmetrical triangle represented by trendlines connecting May 4 and May 18 highs and May 8 and May 20 lows. 

The triangle breakout has bolstered the bullish view put forward by the falling channel breakout confirmed on May 1 and suggests scope for a test of the 2019 high of 7.1952.  The breakout is backed by an above-50 or bullish print on the 14-day relative strength index (RSI). 

On the lower side, an acceptance under 7.10 (last week's low + 50-day simple moving average) would shift risk in favor of a drop to the psychological support of 7.00. 

At press time, the pair is trading largely unchanged on the day at 7.1522.

Daily chart

Trend: Bullish

Technical levels

R3 7.2044
R2 7.1844
R1 7.1666
PP 7.1466
S1 7.1288
S2 7.1088
S3 7.091