USD/CNH Price Analysis: Retreats from 200-DMA to snap three-day uptrend above 6.9300

USD/CNH prints the first daily loss in four as it eases from the highest levels in six weeks.
Key DMA, nearly overbought RSI (14) challenges further upside of the offshore Chinese Yuan (CNH) pair.
Four-month-old symmetrical triangle restricts short-term moves, ascending trend line from early February adds to downside filters.

Anil Panchal FXStreet

USD/CNH drops towards 6.9300 while defying the three-day winning streak ahead of Wednesday’s European session, down 0.16% intraday to 6.9320 at the latest. In doing so, the offshore Chinese Yuan (CNH) pair reverses from its highest levels in 1.5 months.

That said, a failure to cross the 200-DMA triggered the USD/CNH pair’s pullback move. Adding strength to the retreat is the nearly overbought RSI (14) conditions.

As a result, the quote’s further declines towards an upward-sloping support line from February 02, close to 6.8820 at the latest, can’t be ruled out.

However, the bottom line of the four-month-old symmetrical triangle, between 6.9840 and 6.8465, appears strong hurdles for the USD/CNH pair traders to tackle before suggesting clear moves.

On the flip side, a daily closing beyond the 200-DMA level of 6.9520 could direct the USD/CNH bulls toward the stated triangle’s top line surrounding 6.9840.

It’s worth noting that the USD/CNH bulls need validation from the November 2022 bottom surrounding 7.0200 to retake control whereas multiple levels around the 6.8000 round figure can check the pair sellers past 6.8465.

Overall, USD/CNH is likely to remain within the multi-day-old symmetrical triangle.

USD/CNH: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	6.9338
Today Daily Change	-0.0092
Today Daily Change %	-0.13%
Today daily open	6.943

Trends
Daily SMA20	6.887
Daily SMA50	6.8963
Daily SMA100	6.8777
Daily SMA200	6.951

Levels
Previous Daily High	6.9508
Previous Daily Low	6.8948
Previous Weekly High	6.9104
Previous Weekly Low	6.8646
Previous Monthly High	6.997
Previous Monthly Low	6.8104
Daily Fibonacci 38.2%	6.9295
Daily Fibonacci 61.8%	6.9162
Daily Pivot Point S1	6.9082
Daily Pivot Point S2	6.8736
Daily Pivot Point S3	6.8522
Daily Pivot Point R1	6.9642
Daily Pivot Point R2	6.9856
Daily Pivot Point R3	7.0202

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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