- USD/CNH has charted a rising wedge pattern.
- A break below 6.8820 would confirm a rising wedge breakdown.
USD/CNH's bounce from the recent low of 6.8365 has taken the shape of a bearish reversal pattern called a rising wedge and could be short-lived.
As of writing, USD/CNH is flirting with the lower edge of the rising wedge at 6.8820. A 4-hour close below that level would confirm a rising wedge breakdown and open the doors for a retest of the recent low of 6.8365.
The case for rising wedge breakdown looks stronger if we take into account the bearish crossover of the 50- and 200-candle moving averages on the 4-hour chart.
The case for rising wedge breakdown would weaken if the pair finds acceptance above 6.90.
Trend: Bearish below 6.8820
- R3 6.9232
- R2 6.9075
- R1 6.8978
- PP 6.8821
- S1 6.8724
- S2 6.8567
- S3 6.847
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