USD/CNH Price Analysis: Weekly falling channel, 50-HMA probe bounce off multi-month low

USD/CNH eases from intraday high but snaps three-day downtrend near May 2018 levels flashed the previous day.
Upbeat RSI suggests further consolidation of losses, 200-HMA offers extra resistance.

Anil Panchal FXStreet

USD/CNH struggles to keep the intraday gains around 6.3800, up 0.13% on a day, during its first positive daily performance on Friday. The Chinese currency pair dropped to the lowest since May 2018 before bouncing off the 6.3678 level.

However, the corrective pullback battles 50-HMA and resistance line of the one-week-old descending trend channel, around 6.3815. Though, strong RSI backs the pair buyers to cross the nearby key hurdle.

Even so, the weekly top surrounding 6.4130 and 200-HMA near 6.4155 could test the USD/CNH bulls before offering a pass to enter.

On the contrary, 6.3700 and the recent low, also the multi-month bottom, near 6.3675, may entertain intraday sellers ahead of challenging them with the stated channel’s support line, close to 6.3550.

It should be noted that the USD/CNH failures to bounce off 6.3550 makes it vulnerable to revisit the late 2015 double-bottoms around 6.3150.

USD/CNH hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	6.379
Today Daily Change	0.0076
Today Daily Change %	0.12%
Today daily open	6.3714

Trends
Daily SMA20	6.4372
Daily SMA50	6.4915
Daily SMA100	6.4811
Daily SMA200	6.5736

Levels
Previous Daily High	6.3926
Previous Daily Low	6.3678
Previous Weekly High	6.4498
Previous Weekly Low	6.418
Previous Monthly High	6.5876
Previous Monthly Low	6.4614
Daily Fibonacci 38.2%	6.3773
Daily Fibonacci 61.8%	6.3832
Daily Pivot Point S1	6.362
Daily Pivot Point S2	6.3525
Daily Pivot Point S3	6.3372
Daily Pivot Point R1	6.3868
Daily Pivot Point R2	6.4021
Daily Pivot Point R3	6.4116

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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