USD/CNH Price Analysis: Corrective bounce is stalling

USD/CNH's daily chart shows buyer fatigue near 6.83.
The pair risks revisiting the 17-month low of 6.7453.

Omkar Godbole FXStreet Contributor

USD/CNH's recovery rally from 17-month lows looks to have run out of steam.

The long upper wicks attached to the previous four daily candles indicate buyer exhaustion above 6.83.

In other words, these candles indicate the buyers lack the strength to extend the bounce from the Sept. 16 low of 6.7453 beyond 6.83.

Coupled with a potential descending triangle breakdown on the hourly chart, that would open the doors for a re-test of the recent low of 6.7453.

Alternatively, a convincing close above 6.83 would signal a continuation of the recovery rally.

Daily chart

Trend: Neutral

Technical levels

USD/CNH

Overview
Today last price	6.814
Today Daily Change	-0.0020
Today Daily Change %	-0.03
Today daily open	6.816

Trends
Daily SMA20	6.8129
Daily SMA50	6.8912
Daily SMA100	6.983
Daily SMA200	7.001

Levels
Previous Daily High	6.8302
Previous Daily Low	6.8112
Previous Weekly High	6.8462
Previous Weekly Low	6.7532
Previous Monthly High	6.9938
Previous Monthly Low	6.8436
Daily Fibonacci 38.2%	6.823
Daily Fibonacci 61.8%	6.8184
Daily Pivot Point S1	6.808
Daily Pivot Point S2	6.8
Daily Pivot Point S3	6.789
Daily Pivot Point R1	6.8272
Daily Pivot Point R2	6.8383
Daily Pivot Point R3	6.8463

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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