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USD/CNH Price Analysis: Recovers to the 50-hour SMA hurdle

  • USD/CNH has bounced from multi-month lows to the 50-hour SMA resistance. 
  • Intraday charts show scope for a further corrective rally.

USD/CNH is currently trading near the 50-hour Simple Moving Average (SMA) hurdle of 6.4447, having printed a low of 6.4119 on Tuesday. That was the lowest level since June 2018. 

The hourly and 4-hour chart relative strength indices (RSI) have now diverged in favor of the bulls. Meanwhile, the daily chart RSI is reporting oversold conditions with a below-30 print. 

As such, a stronger corrective bounce to the 4-hour chart hurdle-turned-support of 6.4927 could be seen. However, a failure to beat the 50-hour SMA may invite selling pressure, yielding a drop to fresh multi-month lows below 6.40.

Hourly chart

Trend: Corrective bounce

Technical levels

USD/CNH

Overview
Today last price6.4438
Today Daily Change0.0096
Today Daily Change %0.15
Today daily open6.4342
 
Trends
Daily SMA206.5149
Daily SMA506.5622
Daily SMA1006.6752
Daily SMA2006.8671
 
Levels
Previous Daily High6.4578
Previous Daily Low6.4118
Previous Weekly High6.5366
Previous Weekly Low6.4887
Previous Monthly High6.5854
Previous Monthly Low6.4887
Daily Fibonacci 38.2%6.4294
Daily Fibonacci 61.8%6.4403
Daily Pivot Point S16.4115
Daily Pivot Point S26.3887
Daily Pivot Point S36.3655
Daily Pivot Point R16.4575
Daily Pivot Point R26.4806
Daily Pivot Point R36.5034

Author

Omkar Godbole

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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