USD/CNH technical analysis: Another pullback from 21-day EMA

21-day EMA holds the key to USD/CNH run-up towards 23.6% Fibonacci retracement.
50-day EMA acts as immediate support amid recent lower-high formation.

Anil Panchal FXStreet

USD/CNH takes one more U-turn from the 21-day exponential moving average (EMA) as it trades near 6.8800 during early Monday.

The pair is now expected to revisit 50-day EMA support, at 6.8741 now, considering latest lower high formation, a break of which can further fetch the quote towards 38.2% Fibonacci retracement of April – June upside, at 6.8533.

Additionally, the 100-day EMA level of 6.8485 could confine the pair’s extra weakness.

In a case where prices rally beyond 21-day EMA level of 6.8830, 23.6% Fibonacci retracement level of 6.8950 and 6.9000 round-figure can please buyers ahead of pleasing them with mid-June low surrounding 6.9170.

USD/CNH daily chart

Trend: Pullback expected

1. R3 6.9034
2. R2 6.8945
3. R1 6.889
PP 6.8801
1. S1 6.8746
2. S2 6.8657
3. S3 6.8602

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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