- 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
|Today last price||6.477|
|Today Daily Change||-0.0086|
|Today Daily Change %||-0.13%|
|Today daily open||6.4856|
|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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