USD/CNH Price Analysis: Weekly falling channel, 50-HMA probe bounce off multi-month low
|- USD/CNH eases from intraday high but snaps three-day downtrend near May 2018 levels flashed the previous day.
- Upbeat RSI suggests further consolidation of losses, 200-HMA offers extra resistance.
USD/CNH struggles to keep the intraday gains around 6.3800, up 0.13% on a day, during its first positive daily performance on Friday. The Chinese currency pair dropped to the lowest since May 2018 before bouncing off the 6.3678 level.
However, the corrective pullback battles 50-HMA and resistance line of the one-week-old descending trend channel, around 6.3815. Though, strong RSI backs the pair buyers to cross the nearby key hurdle.
Even so, the weekly top surrounding 6.4130 and 200-HMA near 6.4155 could test the USD/CNH bulls before offering a pass to enter.
On the contrary, 6.3700 and the recent low, also the multi-month bottom, near 6.3675, may entertain intraday sellers ahead of challenging them with the stated channel’s support line, close to 6.3550.
It should be noted that the USD/CNH failures to bounce off 6.3550 makes it vulnerable to revisit the late 2015 double-bottoms around 6.3150.
USD/CNH hourly 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.