USD/CNH Price Analysis: Bounces off two-week-old rising channel’s support
- USD/CNH refreshes intraday top while snapping a two-day losing streak.
- Bullish chart formation, easing bearish bias of MACD favor buyers.
- Short-term horizontal area adds to the downside filters, channel’s resistance can test the bulls.
USD/CNH takes the bids to the intraday high of 6.4768, up 0.13% on a day, during the early Tuesday. In doing so, the Chinese currency pair takes a u-turn from the support line of an ascending channel pattern established in mid-February.
In addition to the quote’s ability to keep the bullish chart pattern, receding bearish MACD also keeps the USD/CNH buyers hopeful.
That said, the early February top near 6.4880 offers immediate resistance to the quote ahead of pushing it to the stated channel’s upper line, at 6.5125 now.
During the rise, the 6.5000 threshold can offer an intermediate halt whereas highs marked during February and late January, respectively around 6.5080 and 6.5150, can add filters to the north-run.
Meanwhile, a downside break of 6.4545 will defy the bullish chart pattern and call the USD/CNH sellers to attack a horizontal area comprising multiple levels since late January, around 6.4400-4375.
If at all the USD/CNH bears dominate past-6.4375, the 6.4080 level may offer a buffer during the quote’s south-run targeting the 6.4000 psychological benchmark.
USD/CNH four-hour chart
Trend: Bullish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
