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. 

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
  1. PP 6.8821
    1. S1 6.8724
    2. S2 6.8567
    3. S3 6.847

 

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