USD/CNH Price Analysis: Eases from weekly resistance line but bulls stay hopeful
|- USD/CNH steps back from intraday high while failing to stay beyond 6.8000.
- A falling trend line from September 14 probes the bulls cheering sustained break of 200-hour EMA.
- Two-day-old ascending support line offers additional downside filter during the further declines.
USD/CNH drops to 6.7957 while still flashing near 0.20% intraday gains during the early Wednesday. The pair recently took a U-turn from a seven-day-old falling resistance line. However, the quote’s sustained trading beyond 200-hour EMA, coupled with normal RSI conditions, favors the bulls.
As a result, buyers are targeting the weekly top near 6.8080 on the upside break of the immediate trend line resistance near 6.8005 now.
It should, however, be noted that 6.8110 may probe USD/CNH upside past-6.8080, amid expected overbought RSI, during the further rise.
Meanwhile, a downside break of a 200-hour EMA level of 6.7903 will fetch the quote to an ascending trend line from Monday, currently around 6.7805.
If at all the sellers manage to sneak in around 6.7805, also break the 6.7800 threshold, the weekly bottom near 6.7530 and the monthly low of 6.7422 gains market attention.
USD/CNH hourly chart
Trend: Further recovery expected
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