USD/CNH Technical Analysis: This level could yield corrective bounce

The USD/CNH pair (offshore yuan exchange rate) has faded the drop to near Friday's low of 6.73728 and is now reporting moderate gains at 6.7615.
Notably, it has created a double top bullish reversal pattern on the hourly chart with the neckline resistance at 6.7744.
A break above 6.7744 would confirm the breakout and open the doors to 6.8115.
Put simply, a move above 6.7744 would validate the oversold conditions reported by the 14-day relative strength index (RSI) and allow a corrective bounce.

Omkar Godbole FXStreet Contributor

Hourly chart

Trend: corrective bounce likely

USD/CNH

Overview:
    Today Last Price: 6.7592
    Today Daily change: -20 pips
    Today Daily change %: -0.0296%
    Today Daily Open: 6.7612
Trends:
    Previous Daily SMA20: 6.869
    Previous Daily SMA50: 6.8984
    Previous Daily SMA100: 6.8936
    Previous Daily SMA200: 6.719
Levels:
    Previous Daily High: 6.7956
    Previous Daily Low: 6.7376
    Previous Weekly High: 6.8687
    Previous Weekly Low: 6.7376
    Previous Monthly High: 6.9509
    Previous Monthly Low: 6.826
    Previous Daily Fibonacci 38.2%: 6.7598
    Previous Daily Fibonacci 61.8%: 6.7734
    Previous Daily Pivot Point S1: 6.734
    Previous Daily Pivot Point S2: 6.7069
    Previous Daily Pivot Point S3: 6.6762
    Previous Daily Pivot Point R1: 6.792
    Previous Daily Pivot Point R2: 6.8227
    Previous Daily Pivot Point R3: 6.8498

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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