USD/CNH Price Analysis: Retreats inside bull flag, 6.9150 is the trigger

USD/CNH fades the previous day’s corrective bounce from the weekly bottom but stay inside a bullish chart pattern.
Steady RSI, sustained trading beyond fortnight-old support line, 50-SMA also favor buyers.
Sellers need validation from 6.8820, May’s high to retake control.

Anil Panchal FXStreet

USD/CNH portrays a bullish chart pattern around the two-year high as it drops back to 6.9100 during Friday’s Asian session. In doing so, the offshore Chinese yuan (CNH) pair reverses the previous day’s rebound from the weekly low.

However, steady RSI and the quote’s ability to stay firmer past a two-week-old support line and the 50-SMA keep the USD/CNH buyers hopeful.

In addition to the aforementioned support line and the 50-SMA, close to 6.9050 and 6.8910 in that order, the lower line of the stated channel could also test the bearish bias around 6.8820.

Even if the USD/CNH bears conquer the 6.8820 support, the May 2022 peak surrounding 6.8385 could challenge the pair’s further downside.

Meanwhile, the pair’s upside moves need a sustained break of the 6.9150 hurdle to justify the bullish flag.

Following that, the recent multi-month high near 6.9325-30 could entertain the USD/CNH bulls before the theoretical target surrounding 7.0550. During the run-up, the 7.000 psychological magnet will be crucial to watch.

USD/CNH: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	6.9106
Today Daily Change	-0.0046
Today Daily Change %	-0.07%
Today daily open	6.9152

Trends
Daily SMA20	6.8262
Daily SMA50	6.771
Daily SMA100	6.7196
Daily SMA200	6.5406

Levels
Previous Daily High	6.9204
Previous Daily Low	6.8882
Previous Weekly High	6.8982
Previous Weekly Low	6.8338
Previous Monthly High	6.9326
Previous Monthly Low	6.7164
Daily Fibonacci 38.2%	6.9081
Daily Fibonacci 61.8%	6.9006
Daily Pivot Point S1	6.8955
Daily Pivot Point S2	6.8758
Daily Pivot Point S3	6.8633
Daily Pivot Point R1	6.9277
Daily Pivot Point R2	6.9402
Daily Pivot Point R3	6.9599

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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