USD/CNH Technical Analysis: drops to 5-week low, tests head-and-shoulders neckline support

Omkar Godbole FXStreet Contributor

The USD/CNH pair has dropped to 6.8367 - the neckline of the head-and-shoulders bearish reversal pattern and the lowest level since Dec. 4 - as expected, having suffered an ascending triangle breakdown earlier this month.

Daily chart

A close below 6.8367 would confirm a head-and-shoulders breakdown. That would mark a transition from the bull market to the bear market and open the doors to 6.6934 (target as per the measured height method).
Only a move above the bearish-lower high of 6.9193 (right shoulder high) would revive the bullish view.

Trend: Bearish below 6.8367

USD/CNH

Overview:
    Today Last Price: 6.8395
    Today Daily change: -1.4e+2 pips
    Today Daily change %: -0.203%
    Today Daily Open: 6.8534
Trends:
    Previous Daily SMA20: 6.8834
    Previous Daily SMA50: 6.907
    Previous Daily SMA100: 6.8954
    Previous Daily SMA200: 6.7114
Levels:
    Previous Daily High: 6.8687
    Previous Daily Low: 6.843
    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%: 6.8589
    Previous Daily Fibonacci 61.8%: 6.8528
    Previous Daily Pivot Point S1: 6.8414
    Previous Daily Pivot Point S2: 6.8293
    Previous Daily Pivot Point S3: 6.8157
    Previous Daily Pivot Point R1: 6.8671
    Previous Daily Pivot Point R2: 6.8807
    Previous Daily Pivot Point R3: 6.8928

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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