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USD/CNY Technical Analysis: Drops below 6.80, bearish RSI divergence calls for a deeper pullback

  • The USD/CNY pair fell below 6.80 and could suffer deeper losses, courtesy of the large bearish relative strength index (RSI) divergence seen in the daily chart.
  • An uptick in the CNY could put a bid under the AUD, other China proxies, commodities.

Daily chart

Spot Rate: 6.7935

Daily High: 6.8222

Daily Low: 6.7885

Trend: Bearish

Resistance

R1: 6.8222 (daily high)

R2: 6.8389 (July 30 high)

R3: 6.8440 (July 2017 high)

Support

S1: 6.7891 (10-day moving average)

S2: 6.7360 (July 26 low)

S3: 6.7168 (July 3 high)

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