USD/CNH Technical Analysis: Break below 100-day EMA would bolster the bearish setup

Omkar Godbole FXStreet Contributor

The USD/CNH pair could suffer deeper losses if the immediate support at 6.8857 is breached, technical charts indicate.

Daily chart

As seen above, the pair suffered an ascending triangle breakdown last week, signaling a continuation of the sell-off from the Nov. 30 high of 6.9564.
The 5- and 10-day exponential moving averages (EMAs) are trending south, indicating a bearish setup.
Further, the falling channel indicates the bears are in a commanding position.

All-in-all, the path of least resistance is on the downside. As a result, the 100-day EMA support of 6.8857 could be breached soon. Moreover, that would only bolster the already bearish technical setup, opening doors for 6.8043 (23.6% Fib R of March 2018 low/November high).

A falling channel breakout, if confirmed, would signal a bullish reversal.

Trend: Bearish

USD/CNH

Overview:
    Today Last Price: 6.8623
    Today Daily change: -47 pips
    Today Daily change %: -0.0684%
    Today Daily Open: 6.867
Trends:
    Previous Daily SMA20: 6.8893
    Previous Daily SMA50: 6.9119
    Previous Daily SMA100: 6.8951
    Previous Daily SMA200: 6.7056
Levels:
    Previous Daily High: 6.8838
    Previous Daily Low: 6.864
    Previous Weekly High: 6.8947
    Previous Weekly Low: 6.8594
    Previous Monthly High: 6.9509
    Previous Monthly Low: 6.826
    Previous Daily Fibonacci 38.2%: 6.8716
    Previous Daily Fibonacci 61.8%: 6.8762
    Previous Daily Pivot Point S1: 6.8594
    Previous Daily Pivot Point S2: 6.8518
    Previous Daily Pivot Point S3: 6.8396
    Previous Daily Pivot Point R1: 6.8792
    Previous Daily Pivot Point R2: 6.8914
    Previous Daily Pivot Point R3: 6.899

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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