USD/CNH Price Analysis: Wednesday's 0.7% gain confirmed bullish divergence on D1

USD/CNH's daily chart shows a bullish RSI divergence.
The pair has exited a two-month-long falling channel.

Omkar Godbole FXStreet Contributor

Escalation of Sino-US tensions weighed over the Chinese offshore yuan (CNH) on Wednesday and pushed USD/CNH higher by 0.7%.

The uptick confirmed a bullish divergence (higher lows) of the 14-day relative strength index established on July 21. The positive divergence suggests a bottom is in place and the path of least resistance is now on the higher side.

The falling channel breakout seen on the daily chart is also echoing similar sentiment and so is Wednesday's bullish marubozu candle, which comprises of big green body and little or no wicks. What's more, the MACD histogram has crossed above zero in favor of the bulls.

As such, the pair looks set to challenge the former support-turned-resistance at 7.04 (June 10 low). At press time, the pair is trading in the red near 7.0067, having printed a high of 7.0172 early Thursday. The bullish bias would be invalidated if Wednesday's low of 6.9641 is breached.

Daily chart

Trend: Bullish

Technical levels

USD/CNH

Overview
Today last price	7.0062
Today Daily Change	-0.0114
Today Daily Change %	-0.16
Today daily open	7.0176

Trends
Daily SMA20	7.0264
Daily SMA50	7.073
Daily SMA100	7.0742
Daily SMA200	7.0353

Levels
Previous Daily High	7.0182
Previous Daily Low	6.9642
Previous Weekly High	7.0256
Previous Weekly Low	6.9806
Previous Monthly High	7.1518
Previous Monthly Low	7.04
Daily Fibonacci 38.2%	6.9976
Daily Fibonacci 61.8%	6.9849
Daily Pivot Point S1	6.9818
Daily Pivot Point S2	6.946
Daily Pivot Point S3	6.9278
Daily Pivot Point R1	7.0358
Daily Pivot Point R2	7.054
Daily Pivot Point R3	7.0898

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD recovers further from one-month low set on Friday, eyes mid-1.1800s on weaker USD

The EUR/USD pair is seen building on Friday's late recovery from the 1.1750-1.1740 region, or a nearly one-month trough, and gaining some follow-through positive traction at the start of a new week. The momentum lifts spot prices to the 1.1835 area during the Asian session and is sponsored by a broadly weaker US Dollar.

GBP/USD gathers strength above 1.3500 amid tariff confusion

The GBP/USD pair gains traction to around 1.3520 during the early Asian session on Monday. The US Dollar faces some selling pressure against the Cable as tariff uncertainty lingers. Traders will take more cues from the US Producer Price Index report for January, which will be published later on Friday.

Gold rallies above $5,150 as Trump’s tariffs boost haven demand

Gold price extends the rally above $5,150 in the Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, which boost safe-haven flows. US-Iran geopolitical risks also linger, supporting the Gold price upside.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Liberation day take two, the tariff machine just changed gears

Let me caveat this from the outset. What we are watching is first-order mechanics, not the grand macro endgame. This is the market’s immediate reflex to a 15% Trump tariff levy dressed up as judicial drama. The Supreme Court blocked Trump tarrif hammer. The White House came back with a scalpel.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.