USD/CNH Price Analysis: Recovery remains elusive below 6.7300

USD/CNH renews intraday high as it bounces off two-week low, snaps three-day downtrend.
100-SMA, 23.6% Fibonacci retracement of April-May advances challenge corrective pullback.
RSI hints at a further upside, monthly support line restricts short-term declines.

Anil Panchal FXStreet

USD/CNH takes the bids to renew intraday high around 6.6850 heading into Tuesday’s European session.

In doing so, the offshore Chinese yuan (CNH) pair bounces off an upward sloping trend line from April 29 to print the first daily gains in four. The recovery moves also take clues from the recently firmer RSI from oversold territory, as well as from the RSI breakout of a fortnight-old descending trend line.

However, a convergence of the 100-SMA and 23.6% Fibonacci retracement of the USD/CNH up-moves from April 18 to May 13, near 6.7300, appears a tough nut to crack for the bulls.

Following that, a run-up towards the monthly high surrounding 6.8400 can’t be ruled out.

On the flip side, the weekly descending trend line and an upward sloping support line restrict the short-term downside of the USD/CNH pair to around 6.6500.

Following that, the 200-SMA near 6.6000 appears the last defense for the USD/CNH bulls.

USD/CNH: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	6.6816
Today Daily Change	0.0208
Today Daily Change %	0.31%
Today daily open	6.6608

Trends
Daily SMA20	6.7067
Daily SMA50	6.5188
Daily SMA100	6.4338
Daily SMA200	6.4253

Levels
Previous Daily High	6.7038
Previous Daily Low	6.6478
Previous Weekly High	6.8206
Previous Weekly Low	6.6726
Previous Monthly High	6.694
Previous Monthly Low	6.3512
Daily Fibonacci 38.2%	6.6692
Daily Fibonacci 61.8%	6.6824
Daily Pivot Point S1	6.6378
Daily Pivot Point S2	6.6147
Daily Pivot Point S3	6.5817
Daily Pivot Point R1	6.6939
Daily Pivot Point R2	6.7269
Daily Pivot Point R3	6.75

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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