USD/CNH technical analysis: Upside break of 5-month falling trendline confirmed
|- USD/CNH bullish trend confirmed by a falling trendline breakout
- Bullish case would be strengthened with a close above 6.7497
USD/CNH closed well above the confluence of the trendline connecting Nov. 30 and Dec. 21 highs and the 50-day moving average (MA) on Tuesday, confirming a bearish-to-bullish trend change.
The upside break of the trendline validates the bearish exhaustion signaled by the multiple long-tailed weekly candles.
As a result, the path of least resistance appears to be on the higher side. The bullish case would further strengthen if the pair closes above 6.7497 (March 28 high). That would open up upside toward the 200-day moving average (MA), currently at 6.8204.
The bullish case would weaken if the spot falls back below the falling trendline.
Daily chart
Trend: Bullish
Pivot points
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.