USD/CNH Price Analysis: Pullback from monthly hurdle tests buyers around 6.7700
|- USD/CNH retreats from four-week-old horizontal resistance, tests weekly support line.
- Bullish MACD signals, sustained trading above 200-SMA keeps buyers hopeful.
- Buyers have multiple hurdles to cross stay on merit versus the sellers.
USD/CNH consolidates recent gains around the monthly high, retreating from a short-term horizontal resistance towards 6.7700 during Tuesday’s Asian session.
In doing so, the offshore Chinese yuan (CNH) pair eases from a four-week-long hurdle as sellers attack the weekly support line near the 6.7700 threshold. Also challenging the USD/CNH bulls is the market's positioning ahead of the Wednesday's Federal Open Market Committee (FOMC). Additionally, growing chatters surrounding the People's Bank of China's (PBOC) next move could also be linked to the quote's latest pullback.
It’s worth noting, however, that the bullish MACD signals and the quote’s ability to stay beyond the 200-SMA keep the USD/CNH buyers hopeful until the prices drop below the stated key SMA level of 6.7100.
Even so, a downside break of the immediate support can direct the 61.8% and 50% Fibonacci retracements of the May-June downturn, respectively around 6.7540 and 6.7280.
Alternatively, recovery moves need to cross the nearby resistance surrounding 6.7865-85, as well as cross the 6.7900 round figure, to recall the USD/CNH buyers.
Following that, multiple resistances around 6.8200 and 6.8300 could probe the pair bulls before directing them towards the yearly peak of 6.8384.
Overall, USD/CNH remains on the bull's radar ahead of this week's key data/events, despite the latest profit-booking moves.
USD/CNH: Four-hour chart
Trend: Pullback expected
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.