USD/CNH Price Analysis: Refreshes 17-month high amid overbought RSI
|- USD/CNH rises to the highest levels since November 2020 despite USD pullback.
- Overbought RSI conditions, key Fibonacci retracement levels also challenge the bulls.
- 200-DMA, previous resistance from March 2021 appear strong support.
USD/CNH remains on the front foot around a 1.5-year high surrounding 6.6900 during Friday’s Asian session.
In doing so, the offshore Chinese yuan (CNH) ignores the overbought RSI conditions, as well as the broad US dollar pullback from a 20-year peak, marked the previous day, amid worsening covid conditions in China.
That said, a pullback remains elusive until the quote stays beyond the 38.2% Fibonacci retracement (Fibo.) of May 2020 to February 2022 downside, near 6.6500.
Following that, April 2021 peak close to 6.5870 and 23.6% Fibo. level near 6.5165 may lure the USD/CNH bears.
However, the 200-DMA and the resistance-turned-support line from early 2021, respectively around 6.4050 and 6.3985, will challenge the pair’s further downside.
On the contrary, a 50% Fibonacci retracement level of 6.7520 will be on the USD/CNH bull’s radar during the quote’s further upside.
Should the USD/CNH buyers remain dominant past 6.7520, the November 2020 peak of 6.7746 will be in focus.
USD/CNH: Daily 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.