USD/CNH Technical Analysis: Signs of bullish exhaustion
|- The repeated failure to hold on to gains above 6.84, as seen in the hourly chart, could be an indication the USD/CNH bulls are likely running dry.
- The signs of bullish exhaustion only validate the large bearish relative strength index (RSI) seen in the daily chart.
- As a result, a pullback to levels below 6.80 could be on the cards and could happen today as the PBOC announced a stronger daily CNY fix.
Hourly chart
Spot Rate: 6.8220
Daily High: 6.8348
Daily Low: 6.8156
Trend: Bullish exhaustion
R1: 6.84569 (previous day's high)
R2: 6.8560 (July 27 high)
R3: 6.8810 (upper Bollinger band)
Support
S1: 6.80 (previous day's low)
S2: 6.7737 (Tuesday's low)
S3: 6.7527 (20-day moving average)
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