USD/CNH Technical Analysis: RSI divergence is hinting at a re-test of key trendline support

The USD/CNH pair is currently trading at 6.91 - up 1.24 percent from the recent low of 6.8256.
On the hourly chart, the relative strength index (RSI) has diverged in favor of the bears. As a result, the pair looks set to test the rising trendline support, currently at 6.8954 - a level where the 200-hour MA is located.
A break below that trendline would signal an end of the corrective bounce from the recent low of 6.8256 and could yield a deeper drop to 6.8650.
A solid bounce from the rising trendline would validate the bullish crossover between the 50-hour and 200-hour moving averages (MAs) and open up upside towards 6.95.

Omkar Godbole FXStreet Contributor

Hourly Chart

Trend: Intraday bearish

USD/CNH

Overview:
    Today Last Price: 6.9092
    Today Daily change: -47 pips
    Today Daily change %: -0.0680%
    Today Daily Open: 6.9139
Trends:
    Previous Daily SMA20: 6.9196
    Previous Daily SMA50: 6.9244
    Previous Daily SMA100: 6.8869
    Previous Daily SMA200: 6.6512
Levels:
    Previous Daily High: 6.921
    Previous Daily Low: 6.8865
    Previous Weekly High: 6.9509
    Previous Weekly Low: 6.826
    Previous Monthly High: 6.9808
    Previous Monthly Low: 6.8525
    Previous Daily Fibonacci 38.2%: 6.9078
    Previous Daily Fibonacci 61.8%: 6.8997
    Previous Daily Pivot Point S1: 6.8933
    Previous Daily Pivot Point S2: 6.8726
    Previous Daily Pivot Point S3: 6.8588
    Previous Daily Pivot Point R1: 6.9278
    Previous Daily Pivot Point R2: 6.9416
    Previous Daily Pivot Point R3: 6.9623

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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