USD/CNH Price Analysis: Rebound looks to two-month-old resistance at $6.4800
|- USD/CNH grinds higher at weekly top, defends bounce off 100-SMA.
- RSI conditions favor further upside towards the key resistance line.
- Bulls need validation from monthly high, sellers may eye yearly low on breaking SMA support.
USD/CNH extends the previous day’s recovery moves to refresh the weekly top around $6.4780 during early Wednesday, up 0.12% intraday around $6.4730 by the press time.
In doing so, the quote justifies the U-turn from 100-SMA, as well as upbeat RSI conditions, to keep buyers hopeful.
However, a downward sloping trend line from late July, near $6.4810, will be the key for the offshore Chinese currency (CNH) pair’s further advances.
Also acting as an upside hurdle is the monthly top near $6.4880, a break of which will direct the north-run towards August month’s high near $6.5100.
Alternatively, pullback moves remain less worrisome until staying beyond 100-SMA level around $6.4570.
Even if the quote drops below 100-SMA, July-end lows near $6.4500 will challenge the USD/CNH bears before directing them to the yearly low of $6.4244.
USD/CNH: Four-hour chart
Trend: Further upside 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.