USD/CNH Technical Analysis: pair hits fresh 5.5-month low, RSI oversold

  • The USD/CNH pair fell to 6.7684 soon before press time - its lowest level since July 26 - having witnessed a head-and-shoulders breakdown on Wednesday.
  • That bearish pattern has opened up downside towards 6.70-6.69 (target as per the measured move method).
  • The pair, however, could be in for a minor bounce before falling to 6.70, as the 14-day relative strength index (RSI) of 29.43 is reporting oversold conditions for the first time since February 2018. The RSI on the 4-hour and the hourly chart is also hovering in oversold territory below 30.00.
  • The bearish outlook would be invalidated if the corrective bounce if any, ends up clearing the head-and-shoulders neckline resistance (former support).

Daily chart

Trend: bearish

USD/CNH

Overview:
    Today Last Price: 6.7726
    Today Daily change: -2.0e+2 pips
    Today Daily change %: -0.290%
    Today Daily Open: 6.7923
Trends:
    Previous Daily SMA20: 6.8761
    Previous Daily SMA50: 6.9012
    Previous Daily SMA100: 6.894
    Previous Daily SMA200: 6.7167
Levels:
    Previous Daily High: 6.8247
    Previous Daily Low: 6.7804
    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%: 6.7973
    Previous Daily Fibonacci 61.8%: 6.8078
    Previous Daily Pivot Point S1: 6.7736
    Previous Daily Pivot Point S2: 6.7548
    Previous Daily Pivot Point S3: 6.7292
    Previous Daily Pivot Point R1: 6.8179
    Previous Daily Pivot Point R2: 6.8434
    Previous Daily Pivot Point R3: 6.8622

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.