- 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
|Today last price||6.3704|
|Today Daily Change||-0.0140|
|Today Daily Change %||-0.22%|
|Today daily open||6.3844|
|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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