USD/CNH Price Analysis: Flag breakout remains elusive

USD/CNH continues to trade inside a flag pattern on the 4-hour chart.
A breakout is needed to revive the immediate bullish bias.

Omkar Godbole FXStreet Contributor

USD/CNH is currently trading at session lows near 7.1120, representing a 0.18% drop on the day, having faced rejection at 7.1380 early Thursday.

The reversal lower from 7.1380 marks a failure on the part of the bulls to push through the top end of a bull flag pattern seen on the 4-hour chart. A breakout would have meant a continuation of the rally from the March 9 low of 6.9042 and set the tone for a re-test of recent highs above 7.15.

However, with pair still stuck in a flag pattern, the immediate outlook remains neutral. The bias would turn bearish if the spot ends Thursday under Wednesday's low of 7.0584. That would invalidate Wednesday's bullish outside day candlestick pattern.

4-hour chart

Trend: Neutral

Technical levels

USD/CNH

Overview
Today last price	7.1112
Today Daily Change	-0.0208
Today Daily Change %	-0.18
Today daily open	7.132

Trends
Daily SMA20	7.0182
Daily SMA50	6.9922
Daily SMA100	6.9938
Daily SMA200	7.0113

Levels
Previous Daily High	7.1426
Previous Daily Low	7.059
Previous Weekly High	7.1654
Previous Weekly Low	6.9936
Previous Monthly High	7.0572
Previous Monthly Low	6.9572
Daily Fibonacci 38.2%	7.1107
Daily Fibonacci 61.8%	7.091
Daily Pivot Point S1	7.0798
Daily Pivot Point S2	7.0276
Daily Pivot Point S3	6.9962
Daily Pivot Point R1	7.1634
Daily Pivot Point R2	7.1948
Daily Pivot Point R3	7.247

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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