- USD/CNH grinds higher at weekly top, defends bounce off 100-SMA.
- RSI conditions favor further upside towards the key resistance line.
- Bulls need validation from monthly high, sellers may eye yearly low on breaking SMA support.
USD/CNH extends the previous day’s recovery moves to refresh the weekly top around $6.4780 during early Wednesday, up 0.12% intraday around $6.4730 by the press time.
In doing so, the quote justifies the U-turn from 100-SMA, as well as upbeat RSI conditions, to keep buyers hopeful.
However, a downward sloping trend line from late July, near $6.4810, will be the key for the offshore Chinese currency (CNH) pair’s further advances.
Also acting as an upside hurdle is the monthly top near $6.4880, a break of which will direct the north-run towards August month’s high near $6.5100.
Alternatively, pullback moves remain less worrisome until staying beyond 100-SMA level around $6.4570.
Even if the quote drops below 100-SMA, July-end lows near $6.4500 will challenge the USD/CNH bears before directing them to the yearly low of $6.4244.
USD/CNH: Four-hour chart
Trend: Further upside expected
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