USD/CNH takes offers to refresh intraday low around the highest levels since August 2020.
Sustained trading beyond May’s peak, bullish MACD signals favor buyers.
Ascending resistance line from April 2021 lures buyers, two-month-old previous trend line resistance adds to downside filters.
USD/CNH stands on slippery grounds near 6.8565 as it consolidates the recent gains around the highest levels in two years during Thursday’s Asian session.
Even so, the offshore Chinese yuan (CNH) pair remains well above the previously key resistances, which in turn joins the bullish MACD signals to keep buyers hopeful.
That said, May 2022 high near 6.8385 appears the immediate support for the USD/CNH bears to watch. It’s worth noting that a two-week-old support line near 6.8340 could also restrict the pair’s short-term downside.
In a case where the quote drops below 6.8340, it can approach the resistance-turned-support line from late May, close to the 6.8000 psychological magnet.
Meanwhile, recovery moves may initially aim for the latest peak of 6.8876 before targeting the 6.9000 round figure.
Following that, an upward sloping resistance line from April 2021, close to 6.9030 at the latest, appears the important hurdle for the USD/CNH bulls to cross.
It should be noted that the pair’s successful run-up beyond 6.9030 could help it aim for the late 2018 peak surrounding 6.9800.
USD/CNH: Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.