USD/CNH Price Analysis: Eight-month-old support line, oversold RSI test bears near 6.7200

USD/CNH pares intraday losses around 13-day low, picking up bids of late.
Ascending trend line from June 2022 appears a tough nut to crack for bears amid oversold RSI.
10-DMA guards recovery moves, three-week-old resistance line challenge bulls.

Anil Panchal FXStreet

USD/CNH bounces off two-week low while picking up bids to 6.7180 during early Thursday morning in Asia. In doing so, the offshore Chinese Yuan (CNH) pair also justifies the oversold RSI conditions.

However, the quote’s sustained trading below the key SMAs and a downward-sloping trend line from early January keeps the USD/CNH bears hopeful.

It’s worth noting that not only the stated support line from June 2022, close to 6.7040, but the previous monthly low of 6.6975 also challenges the pair’s further downside.

Though, a sustained break of 6.6975 won’t hesitate to visit the mid-2022 bottom surrounding 6.6170.

Meanwhile, recovery moves may initially poke the 10-DMA hurdle of 6.7570 before challenging the 21-DMA resistance of near 6.7680.

Following that, a downward sloping trend line from January 10, close to 6.7880, will be crucial for the USD/CNH buyers as a break of which could confirm a short-term upside. Even so, the 6.8000 round figure may act as a final defense of the pair sellers.

Overall, USD/CNH remains on the bear’s radar unless crossing the 6.8000 psychological magnet even if a short-term recovery appears on the table.

USD/CNH: Daily chart

Trend: Corrective bounce expected

Additional important levels

Overview
Today last price	6.7178
Today Daily Change	-0.0048
Today Daily Change %	-0.07%
Today daily open	6.7226

Trends
Daily SMA20	6.7696
Daily SMA50	6.9113
Daily SMA100	7.0395
Daily SMA200	6.9005

Levels
Previous Daily High	6.7604
Previous Daily Low	6.7146
Previous Weekly High	6.7916
Previous Weekly Low	6.7218
Previous Monthly High	6.9396
Previous Monthly Low	6.6976
Daily Fibonacci 38.2%	6.7321
Daily Fibonacci 61.8%	6.743
Daily Pivot Point S1	6.7046
Daily Pivot Point S2	6.6868
Daily Pivot Point S3	6.6588
Daily Pivot Point R1	6.7504
Daily Pivot Point R2	6.7784
Daily Pivot Point R3	6.7962

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.

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