USD/CNH Price Analysis: Holds above 7.12, flag breakout on D1

• USD/CNH's flag breakout suggests the path of least resistance is to the higher side. 
• The daily chart also shows an impending golden crossover. 

USD/CNH is currently sidelined above 7.12, having jumped by 0.40% from 7.0892 to 7.1166 on Wednesday. 

The green candle created on Wednesday has confirmed a bull flag breakout on the daily chart. The bullish continuation pattern indicates the pullback from the March 19 high of 7.1653 has ended and the rally from the March 9 low of 6.948 has resumed. 

The breakout, coupled with the impending golden cross or the bullish crossover of the 50- and 200-day averages, suggests scope for a test of the resistance at 7.1425 (March 25 high). A violation there would expose the recent high of 7.1653. 

On the downside, a close under Wednesday's low of 7.0780 would turn the tide in favor of the bears. 

Daily chart

Trend: Bullish

Technical levels