USD/CNH Price Analysis: Wednesday's Doji signals downtrend exhaustion

USD/CNH's daily chart indicates the sell-off from May highs has run out of steam.
Technical indicators suggest scope for a corrective bounce.

Omkar Godbole FXStreet Contributor

USD/CNH is sidelined near 6.83 at press time, having created a Doji candle on Wednesday.

A Doji is usually considered a sign of indecision in the market place. However, in this case, the candlestick has appeared following a notable sell-off from 7.19 to 6.81 and indicates seller exhaustion.

Wednesday's Doji has also validated oversold readings on the 14-day relative strength index and the stochastic indicator.

As such, the pair could bounce to the 10-day simple moving average (SMA), currently at 6.8690. On the downside, the Sept. 1 low of 6.81 is the level to beat for the bears.

Daily chart

Trend: Bear fatigue

Technical levels

USD/CNH

Overview
Today last price	6.8308
Today Daily Change	-0.0018
Today Daily Change %	-0.03
Today daily open	6.8326

Trends
Daily SMA20	6.9095
Daily SMA50	6.9729
Daily SMA100	7.0378
Daily SMA200	7.0206

Levels
Previous Daily High	6.8386
Previous Daily Low	6.8224
Previous Weekly High	6.9216
Previous Weekly Low	6.8578
Previous Monthly High	6.9938
Previous Monthly Low	6.8436
Daily Fibonacci 38.2%	6.8286
Daily Fibonacci 61.8%	6.8325
Daily Pivot Point S1	6.8239
Daily Pivot Point S2	6.815
Daily Pivot Point S3	6.8076
Daily Pivot Point R1	6.8401
Daily Pivot Point R2	6.8475
Daily Pivot Point R3	6.8563

Author

Omkar Godbole

FXStreet Contributor

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

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