USD/CNH technical analysis: Probing the lower end of the rising wedge on 4H

USD/CNH has charted a rising wedge pattern.
A break below 6.8820 would confirm a rising wedge breakdown.

Omkar Godbole FXStreet Contributor

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.

4-hour chart

Trend: Bearish below 6.8820

Pivot points

1. R3 6.9232
2. R2 6.9075
3. R1 6.8978
PP 6.8821
1. S1 6.8724
2. S2 6.8567
3. S3 6.847

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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