USD/CNH Price Analysis: Bulls attack 6.6980 key hurdle
- USD/CNH remains on the front foot, grinds higher around crucial resistance.
- Multiple tops marked during the week highlight 6.6890 as strong challenge for bulls.
- Two-day-old support line, 20-SMA restricts immediate downside ahead of fortnight-long horizontal support.
USD/CNH holds onto the previous day's recovery moves as buyers attack multiple tops marked surrounding 6.6980, with an intraday high being 6.6972, during Friday’s Asian session.
Given the recently bullish MACD signals and sustained trading beyond the 20-SMA, not to forget the two-day-old rising support line, USD/CNH prices are likely to stay firmer.
That said, a clear upside break of the 6.6980 becomes necessary for the USD/CNH bulls to brace for the 61.8% Fibonacci Expansion (FE) of April 24 to May 03 moves, near 6.7180.
It’s worth noting that the pair’s successful run-up beyond 6.7180 will direct buyers towards the 6.7860 level, counted as the difference of the latest range.
Meanwhile, pullback moves may initially aim for the 20-SMA and aforementioned trend line support, respectively near 6.6640 and 6.6590.
Following that, a horizontal area from April 25, near 6.6090-6110, will be crucial to watch.
USD/CNH: Four-hour chart
Trend: Further upside expected
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.
