USD/CNH Price Analysis: Prints falling wedge on 4H below 6.9100

USD/CNH bounces off intraday low of 6.9005, marks a two-day losing streak.
Sluggish momentum indicators challenge bullish chart formation.
200-bar SMA adds to the upside barriers, the yearly bottom gains the bears’ attention.

Anil Panchal FXStreet

USD/CNH picks up bids near 6.9080 amid the initial trading session on Tuesday. Even if the cross drops for the second day, a falling wedge formation on the four-hour chart (4H) keeps the bulls hopeful.

Other than the pair’s latest weakness, downbeat conditions of RSI and MACD also challenges the buyers.

Even so, a sustained break of 6.9180 resistance will theoretically confirm the quote’s run-up towards breaking the monthly top surrounding 7.000 round figures.

During a north-run, the 200-bar SMA level near 6.9700 will act as an intermediate halt whereas the late-July top surrounding 7.0300 could the optimists afterward.

Meanwhile, the seven-month low flashed, on Friday, around 6.8930 and the support line of the said bullish formation near 6.8910 challenges the sellers targeting the yearly bottom near 6.8455.

USD/CNH four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	6.9072
Today Daily Change	-0.0050
Today Daily Change %	-0.07%
Today daily open	6.9122

Trends
Daily SMA20	6.9519
Daily SMA50	7.0023
Daily SMA100	7.0514
Daily SMA200	7.0263

Levels
Previous Daily High	6.9216
Previous Daily Low	6.9038
Previous Weekly High	6.9464
Previous Weekly Low	6.8934
Previous Monthly High	7.0764
Previous Monthly Low	6.9642
Daily Fibonacci 38.2%	6.9105
Daily Fibonacci 61.8%	6.9148
Daily Pivot Point S1	6.9035
Daily Pivot Point S2	6.8947
Daily Pivot Point S3	6.8857
Daily Pivot Point R1	6.9213
Daily Pivot Point R2	6.9303
Daily Pivot Point R3	6.9391

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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