USD/CNH Price Forecast: Seems vulnerable near 6.9060, descending channel breakdown in play
- USD/CNH prolongs its recent well-established downtrend and seems vulnerable to slide further.
- A breakdown below a short-term descending channel validates the negative outlook for the pair.
- The daily RSI points to oversold conditions and could trigger a modest recovery in the near term.
The USD/CNH pair trades with a negative bias for the fourth consecutive day and drops to a fresh low since May 2023 during the Asian session on Tuesday. Spot prices currently trade around the 6.9060 area, down over 0.10% for the day, and seem vulnerable to prolong a well-established medium-term downtrend from the April 2025 swing high.
With the latest leg down, the USD/CNH pair confirms a fresh breakdown through the lower boundary of a descending channel. The Moving Average Convergence Divergence (MACD) shows the MACD line below the Signal line near the zero mark, and the negative histogram is modestly widening, suggesting strengthening downside momentum and validating the negative outlook for the USD/CNH pair.
However, the Relative Strength Index (RSI) at 27 (oversold) flags stretched selling, which could slow the decline even as bears retain control. Nevertheless, a decisive break beneath the channel floor already seems to have set the stage for further slide. The MACD would need to contract back toward zero to hint at fading pressure, and an RSI rebound above 30 could encourage a corrective bounce.
That said, the prevailing descending structure would temper upside attempts, and any recovery would face initial resistance at 6.9495, where the upper boundary caps gains.
(The technical analysis of this story was written with the help of an AI tool.)
USD/CNH daily chart
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.82% | -0.73% | -1.35% | -0.89% | -1.12% | -0.60% | -1.38% | |
| EUR | 0.82% | 0.09% | -0.57% | -0.08% | -0.31% | 0.22% | -0.57% | |
| GBP | 0.73% | -0.09% | -0.36% | -0.17% | -0.40% | 0.10% | -0.66% | |
| JPY | 1.35% | 0.57% | 0.36% | 0.50% | 0.27% | 0.81% | -0.11% | |
| CAD | 0.89% | 0.08% | 0.17% | -0.50% | -0.13% | 0.31% | -0.50% | |
| AUD | 1.12% | 0.31% | 0.40% | -0.27% | 0.13% | 0.53% | -0.27% | |
| NZD | 0.60% | -0.22% | -0.10% | -0.81% | -0.31% | -0.53% | -0.79% | |
| CHF | 1.38% | 0.57% | 0.66% | 0.11% | 0.50% | 0.27% | 0.79% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
