USD/CNH Price Analysis: Bears on alert below $6.4800, daily closing pivotal


  • USD/CNH teases rising wedge bearish pattern’s confirmation, offered near intraday high.
  • Failure to cross 200-DMA, downbeat Momentum line also favor sellers.
  • Bulls need fresh high of the month to retake controls.

USD/CNH takes offers around $6.4770, down 0.14% intraday, amid early Thursday.

The Chinese yuan (CNH) bulls battle the key support line stretched from May-end while extending pullback from 200-DMA.

The pullback becomes crucial as the stated trend line forms a part of multi-day-old rising wedge bearish formation and daily closing below $6.4800, which will trigger the theoretical fall towards a fresh yearly low.

It’s worth noting that the downward-sloping Momentum line and failures to cross 200-DMA, not to forget fundamental challenges for the US dollar, back the USD/CNH bears.

During the anticipated south-run, the monthly bottom surrounding $6.4500 and early May’s low near $6.4040 could test the sellers ahead of the yearly trough of $6.3524.

On the contrary, a daily closing beyond $6.4800 could trigger a corrective bounce towards the 200-DMA level of $6.4980. However, any further upside will be challenged by the stated wedge’s resistance line near $6.5250.

Overall, USD/CNH stands near the key level but keeps bears hopeful.

USD/CNH: Daily chart

Trend: Further weakness expected 

Additional important levels

Overview
Today last price 6.477
Today Daily Change -0.0086
Today Daily Change % -0.13%
Today daily open 6.4856
 
Trends
Daily SMA20 6.4787
Daily SMA50 6.4438
Daily SMA100 6.473
Daily SMA200 6.4983
 
Levels
Previous Daily High 6.5278
Previous Daily Low 6.4844
Previous Weekly High 6.498
Previous Weekly Low 6.4612
Previous Monthly High 6.4948
Previous Monthly Low 6.3606
Daily Fibonacci 38.2% 6.501
Daily Fibonacci 61.8% 6.5112
Daily Pivot Point S1 6.4708
Daily Pivot Point S2 6.456
Daily Pivot Point S3 6.4275
Daily Pivot Point R1 6.5141
Daily Pivot Point R2 6.5426
Daily Pivot Point R3 6.5574

 

 

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