USD/CNH technical analysis: Bullish close above 6.75 remains elusive

USD/CNH violated falling trendline last week. A bull reversal, however, would be confirmed above 6.75.
The breakout may remain elusive as renewed fears of US economic slowdown will likely keep the Dollar on the defensive.

Omkar Godbole FXStreet Contributor

USD/CNH is currently trading at 6.7364, having dropped 0.22 percent on Friday. The Dollar was offered in Friday’s North American session, as the first quarter US GDP report signaled the economy is on track for a deeper slowdown in the near future.

The broad based USD weakness ensured the USD/CNH pair snapped a four-day winning streak and closed below 6.75 (March 28 high), as seen in the chart below.

Daily chart

As seen above, the pair narrowly missed closing above 6.75 on Thursday and fell into the red on Friday.
With the seller exhaustion already evident near 6.68, a close above 6.75 would confirm a bearish-to-bullish trend change.
A bullish close would open the doors to 200-day moving average (MA) lined up at 6.8253.

Trend: Bullish above 6.75

1. R3 6.7757
2. R2 6.764
3. R1 6.7515
PP 6.7399
1. S1 6.7274
2. S2 6.7157
3. S3 6.7033

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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