USD/CNH Technical Analysis: Chipping away at key ascending trendline support
|- The USD/CNH pair is feeling the pull of gravity as Shanghai Composite is gaining altitude, possibly due to assurances from regulators.
- The currency pair is currently trading around the key rising trendline seen in the hourly chart and could suffer a deeper pullback to the 200-hour exponential moving average (EMA) of 6.9201 below the diagonal support line.
- The RSI on the hourly chart has dipped below 50.00 in bearish territory and the MAC is signaling that the bearish move is gathering pace. As a result, the rising trendline support could be breached in the next few hours.
- Only a move above 6.9470 (daily high + resistance on the hourly chart) would weaken the bearish setup.
Hourly Chart
Spot Rate: 6.9358
Daily High: 6.9470
Daily Low: 6.9310
Trend: Bearish
R1: 6.947 (resistance on the hourly chart)
R2: 6.9521 (previous day's high)
R3: 6.9584 (yearly high)
Support
S1: 6.9323 (rising trendline support)
S2: 6.9201 (200-hour EMA)
S3: 6.90 (psychological support)
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