USD/CNH Price Analysis: Mildly bid above 100-SMA, two-week-old resistance in focus
|- USD/CNH picks up bids to refresh intraday top.
- Upbeat RSI line, sustained trading beyond the key SMA favor bulls.
- Sellers need validation from 13-day-old horizontal support for fresh entries.
USD/CNH keeps buyers hopeful while picking up the bids to 6.4800, up 0.10% intraday, amid early Thursday. In doing so, the Chinese currency pair justifies the sustained run-up beyond 100-SMA and Tuesday’s rebound amid an upbeat RSI line.
That said, bulls are currently directed towards a downward sloping trend line from June 23, near 6.4890. However, any further upside will need to cross June top around 6.4950 to keep the buyers happy.
Following that, the 6.5000 threshold and late January tops near 6.5150 should return to the chart.
On the flip side, a clear break below the 100-SMA level of 6.4640 could recall USD/CNH sellers targeting the short-term horizontal support, around 6.4520.
It’s worth noting that the 6.4500 round figure adds a filter to the pair’s downside towards the June 17 swing low of 6.4215.
USD/CNH: Four-hour chart
Trend: Further upside expected
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