USD/CNH technical analysis: Hits ten-day high after bullish breakout
|- USD/CNH rises to the highest level since Aug. 13, validating Thursday's falling channel breakout.
- The 4-hour chart indicators are reporting bullish conditions, however, the daily chart MACD has turned bearish.
USD/CNH is currently trading at 7.0963, having hit a high of 7.1066 a few minutes before time. That was the highest level since Aug. 13.
The pair is better bid a day after witnessing a falling channel breakout and could challenge resistance at 7.1122(Aug. 12 high) during the day ahead. A break above that level would only bolster the bullish case and open the doors for 7.1396 (Aug. 5 high).
Supporting the bullish case is the above-50 reading on the 4-hour chart relative strength index. Further, the moving average convergence divergence is hovering in positive territory, signaling bull market conditions.
Even so, the bulls need to observe caution, as the daily chart MACD has turned bearish and the pair could drop sharply to 6.92 if the falling channel breakout on the 4-hour chart fails.
4-hour chart
Daily chart
Trend: Cautiously bullish
Pivot points
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