USD/CNH Price Analysis: 5-Week SMA caps upside
|- USD/CNH's weekly chart shows seller fatigue at multi-year lows.
- The descending or bearish 5-week SMA restricts upside.
USD/CNH looks oversold, but so far, a notable corrective bounce has remained elusive.
The currency pair is trading near 6.4680 at press time, having failed to take out the 5-week Simple Moving Average (SMA) 6.4889 on Monday. The pair printed a 31-month low of 6.4119 last week.
The long-tail attached to the previous weekly candle indicates seller fatigue and validates the below-30 or oversold reading on the Relative Strength Index.
Also, the weekly chart MACD histogram is charting higher lows below the zero line in a sign of weakening of the bearish momentum.
As such, the immediate bearish bias stands neutralized. A close above the lower high of 6.5530 (Dec. 21 high) would signal a short-term bearish-to-bullish trend change. Meanwhile, the last week's low of 6.4119 is the level to beat for the sellers.
Weekly chart
Trend: Neutral
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.