USD/CNH Technical Analysis: Falling wedge breakout paves way for re-test of Thurday's high

The USD/CNH bounced-off the rising trendline support and cut through resistance at 6.8783 a few minutes before press time, confirming a falling wedge breakout on the 15-minute chart.
The bullish continuation pattern indicates that the rally from the Dec. 5 low of 6.8526 has resumed.
The relative strength index (RSI) on the 15-min chart has turned bullish above 50.00, having carved out a positive divergence earlier today. As a result, the pair could revisit yesterday's high of 6.9069.
The bullish setup would be invalidated if two consecutive 15-min candles close below the ascending trendline. That may happen if equities pick up a strong bid in response to President Trump's tweet that a deal with China is likely to happen within the next 90 days.

Omkar Godbole FXStreet Contributor

15-minute chart

Trend: Bullish

USD/CNH

Overview:
    Today Last Price: 6.8797
    Today Daily change: -1.0 pips
    Today Daily change %: -0.00145%
    Today Daily Open: 6.8798
Trends:
    Previous Daily SMA20: 6.9252
    Previous Daily SMA50: 6.9237
    Previous Daily SMA100: 6.8848
    Previous Daily SMA200: 6.6456
Levels:
    Previous Daily High: 6.9074
    Previous Daily Low: 6.856
    Previous Weekly High: 6.9587
    Previous Weekly Low: 6.9306
    Previous Monthly High: 6.9808
    Previous Monthly Low: 6.8525
    Previous Daily Fibonacci 38.2%: 6.8877
    Previous Daily Fibonacci 61.8%: 6.8756
    Previous Daily Pivot Point S1: 6.8547
    Previous Daily Pivot Point S2: 6.8296
    Previous Daily Pivot Point S3: 6.8032
    Previous Daily Pivot Point R1: 6.9061
    Previous Daily Pivot Point R2: 6.9325
    Previous Daily Pivot Point R3: 6.9576

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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