USD/CNH Price Analysis: RSI divergence tests bears around $6.3700


  • USD/CNH refreshes 5.5-month low before the latest rebound.
  • Bullish RSI divergence inside falling wedge keeps buyers hopeful.
  • 10, 20-DMA confluence guards immediate upside, bears can aim for $6.3300.

USD/CNH consolidates intraday losses around the lowest levels since May 31 ahead of Tuesday’s European session. That said, the quote seesaws around $6.3700 by the press time.

In doing so, the offshore Chinese currency (CNH) pair remains inside a 10-week-old falling wedge bullish chart pattern as the RSI conditions diverge with the recent lower-low formation, suggesting a pullback in prices.

It should, however, be noted that a convergence of the 10-DMA and the 20-DMA near $6.3900 can challenge the corrective pullback before fueling the quote towards the stated wedge’s resistance line near $6.40.

In a case where the USD/CNH buyers manage to cross the $6.40 threshold on a daily closing basis, the pair confirms the bullish formation and can aim for the theoretical target surrounding July’s top of $6.5285.

During the run-up, $6.4250 and tops marked in September around $6.4800 will be the key to watch.

If at all the USD/CNH bears refrain from releasing the controls, the yearly bottom close to $6.3525 and lower line of the wedge, near $6.3350, may flash on the chart.

USD/CNH: Daily chart

Trend: Corrective pullback expected

Additional important levels

Overview
Today last price 6.3704
Today Daily Change -0.0140
Today Daily Change % -0.22%
Today daily open 6.3844
 
Trends
Daily SMA20 6.3908
Daily SMA50 6.428
Daily SMA100 6.451
Daily SMA200 6.4605
 
Levels
Previous Daily High 6.3848
Previous Daily Low 6.3734
Previous Weekly High 6.4076
Previous Weekly Low 6.3712
Previous Monthly High 6.4706
Previous Monthly Low 6.3686
Daily Fibonacci 38.2% 6.3805
Daily Fibonacci 61.8% 6.3777
Daily Pivot Point S1 6.3769
Daily Pivot Point S2 6.3694
Daily Pivot Point S3 6.3654
Daily Pivot Point R1 6.3884
Daily Pivot Point R2 6.3924
Daily Pivot Point R3 6.3999

 

 

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