USD/CNH Technical Analysis: Seller exhaustion near 6.67, potential double bottom on daily chart


USD/CNH has again created a long-tailed weekly candle – a sign of seller exhaustion near 6.67. 

The pair, therefore, may find acceptance above the key 50-day MA hurdle next week. That move could pave the way for a rally to the double bottom neckline resistance of 6.75.

As of writing, the spot is trading at 6.7028, down 0.08 percent on the day, and the 50-day moving average is seen at 6.7206.

Weekly chart

  • As seen above, the pair has created a long-tailed doji this week, the third in eight weeks.
  • Notably, the three long-tailed candles have printed lows near 6.67, a sign of bearish exhaustion. 
  • As a result, the spot could see a corrective bounce next week, more so, if the long-held 50-day MA resistance is breached.

Daily chart

  • As seen above, the 50-day MA has capped upside at least four times in the last three weeks. 
  • Hence, acceptance above that key MA hurdle, currently at 6.7206, would validate the long-tailed candles seen on the weekly chart and open the doors to 6.7292 (double bottom neckline). 
  • The bullish case, however, would weaken if the spot finds acceptance below 6.67.

Trend: Cautiously bullish

USD/CNH

Overview
Today last price 6.7028
Today Daily Change -0.0044
Today Daily Change % -0.07
Today daily open 6.7074
 
Trends
Daily SMA20 6.7176
Daily SMA50 6.7236
Daily SMA100 6.7795
Daily SMA200 6.8284
Levels
Previous Daily High 6.7108
Previous Daily Low 6.677
Previous Weekly High 6.7304
Previous Weekly Low 6.7039
Previous Monthly High 6.7502
Previous Monthly Low 6.6704
Daily Fibonacci 38.2% 6.6979
Daily Fibonacci 61.8% 6.6899
Daily Pivot Point S1 6.686
Daily Pivot Point S2 6.6647
Daily Pivot Point S3 6.6523
Daily Pivot Point R1 6.7198
Daily Pivot Point R2 6.7321
Daily Pivot Point R3 6.7535

 

 

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