USD/CNH technical analysis: Teasing rising wedge breakdown on 4H

USD/CNH's 4-hour chart shows a rising wedge pattern.
A breakdown would imply a bearish reversal and open the doors for 6.95.

Omkar Godbole FXStreet Contributor

China's offshore Yuan (CNH) exchange rate could gain altitude as the USD/CNH's 4-hour chart shows the pair has formed a bearish pattern.

The bounce from recent lows near 6.95 has taken the shape of a rising wedge, which comprises of trendlines connecting higher lows and higher highs. The trendlines, however, are converging – a sign of buyer exhaustion.

As a result, a drop below the lower trendline (rising wedge breakdown) is considered a bearish reversal pattern.

Currently, the pair is trading around the rising wedge support at 7.03. A breakdown, if confirmed, would open the doors for a retest of a recent low of 6.95. On the way lower, the pair may find support at 7.00.

4-hour chart

Trend: Bearish

Technical levels

USD/CNH

Overview
Today last price	7.0313
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	7.0313

Trends
Daily SMA20	7.0264
Daily SMA50	7.0725
Daily SMA100	7.0443
Daily SMA200	6.9217

Levels
Previous Daily High	7.0536
Previous Daily Low	7.0231
Previous Weekly High	7.0378
Previous Weekly Low	6.9592
Previous Monthly High	7.1705
Previous Monthly Low	7.0295
Daily Fibonacci 38.2%	7.0347
Daily Fibonacci 61.8%	7.0419
Daily Pivot Point S1	7.0184
Daily Pivot Point S2	7.0055
Daily Pivot Point S3	6.9879
Daily Pivot Point R1	7.0489
Daily Pivot Point R2	7.0665
Daily Pivot Point R3	7.0794

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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