USD/CNH technical analysis: U-turn from 6.9000/05 highlights 4H 50/100 MA confluence

USD/CNH keeps failing to cross the horizontal resistance region since early-month.
4H 50/100 MA confluence becomes near-term key support.

Anil Panchal FXStreet

With its another failure to cross 6.9000/05 horizontal-area, USD/CNH witnesses pullback as it declines to 6.8871 ahead of Tuesday’s European session.

The pair now aims for the 6.8812/15 confluence including 50 and 100-bar moving averages on the 4-hour chart (4H 50/100 MA), a break of which can fetch prices to 12-day long ascending trend-line, at 6.8692.

Should the quote refrains from respecting 6.8692 support, 23.6% Fibonacci retracement of its June month south-run, at 6.8512, can be on sellers’ mind.

Meanwhile, an upside clearance of 6.90005 comprising multiple highs since early-month can trigger pair’s fresh advances to June 19 high close to 6.9100 ahead of pushing buyers towards early-June lows surrounding 6.9150/60.

USD/CNH 4-hour chart

Trend: Pullback expected

1. R3 6.9252
2. R2 6.9128
3. R1 6.903
PP 6.8905
1. S1 6.8807
2. S2 6.8683
3. S3 6.8585

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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