USD/CNH Technical Analysis: Looks north after strong defense of 6.85
|- The USD/CNH created a big bullish hammer candle while defending $6.85 support, adding credence to the bullish divergence of the relative strength index (RSI) witnessed yesterday.
- As a result, the pair could soon re-test the 100-hour moving average (MA), currently located at 6.8985.
- On the downside, acceptance below 6.85 would signal a continuation of the sell-off from the Aug. 15 high of 6.9584.
Hourly chart
Daily Chart: 6.87
Daily High: 6.8795
Daily Low: 6.8462
Trend: Bullish
R1: 6.8986 (100-hour MA)
R2: 6.91 (resistance as per the hourly chart)
R3: 6.9584 (recent high)
Support
S1: 6.8693 (200-hour MA)
S2: 6.8462 (session low)
S3: 6.8129 (Aug. 8 low)
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