- 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.
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.
- 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
- R3 6.7757
- R2 6.764
- R1 6.7515
- PP 6.7399
- S1 6.7274
- S2 6.7157
- S3 6.7033
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