USD/CNH Price Analysis: Refreshes seven-week top on crossing 6.4700 key hurdle
- USD/CNH rises for the ninth consecutive day, attacks intraday top.
- Clear break of 100-day SMA, 50% Fibonacci retracement favor bulls.
- 61.8% Fibo can test the bulls amid overbought RSI conditions.
USD/CNH picks up bids to 6.4875, up 0.10% intraday, while refreshing the highest levels since early May amid Wednesday’s Asian session.
The Chinese currency (CNH) pair remains on the front foot for the ninth day in a row while justifying the upside break of 100-day SMA and 5% Fibonacci retracement (Fibo.) of April–May declines.
Although sustained crossing of the key hurdle, now support, favor USD/CNH bulls, overbought RSI conditions may trigger the quote’s pullback around 61.8% Fibo. level close to 6.4975.
If at all, the cross-currency pair stays firm beyond 6.4975, the 6.5000 psychological magnet will be crucial to watch for the bulls.
Meanwhile, the pair’s short-term pullback will be tested by the stated support confluence around 6.4700, a break of which will have an additional downside filter in the form of two-month-old horizontal support around 6.4600.
It should, however, be noted that the USD/CNH weakness below 6.4600 will make it vulnerable to recall the early month tops near 6.4100 on the chart.
USD/CNH daily chart
Trend: Pullback expected
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.
