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

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: 50-day SMA restricts immediate recovery

EUR/USD buyers look for confirmation, despite recent bounce, as prices still trade below the near-term key moving average, around 1.1025, during early Friday.

EUR/USD News

GBP/USD: On the bids above 100-bar SMA

GBP/USD holds on to recovery gains from 50% Fib retracement level while taking the bids to 1.2885 during the early Asian. Bullish MACD indicates pair’s another run-up to the short-term key resistance line.

GBP/USD News

USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 

USD/JPY News

Gold awaits clear direction around $1470 amid risk reset

With the fresh optimism surrounding the US-China trade accord, Gold prices struggle to extend the previous recovery while taking rounds to $1,471 amid Friday’s initial Asian trading session.

Gold News

US China trade and the global economy: Q&A with FXStreet senior analyst

After the meetings in October it was unclear if the new levies planned for December would be called off. And now, reports suggest that past duties may be removed. All in all, a positive development, isn't it?

Read more

Forex MAJORS

Cryptocurrencies

Signatures