• USD/CNH extends the previous day’s losses to refresh multi-day bottom.
• Bearish MACD signals, absence of oversold RSI favor sellers to aim for six-week-old horizontal support.
• Bulls need to cross 6.7250 hurdle to retake control.

USD/CNH remains on the back foot around the one-month low, down 0.50% near 6.6200 during early Friday.

In doing so, the offshore Chinese yuan (CNH) pair justifies the bearish MACD signals and descending RSI line, not oversold, to extend the previous day’s losses.

However, a horizontal area from late April, surrounding 6.6100, appears a tough nut to crack for the USD/CNH bears.

Also acting as a downside filter is the 6.6000 threshold and 50% Fibonacci retracement level of late March to early May upside, near 6.5910, not to forget the 50-DMA level of 6.5750.

Meanwhile, recovery moves need validation from May’s low near 6.6480 to aim for the 6.7250 key hurdle comprising the 21-DMA and 23.6% Fibonacci retracement levels.

Should the USD/CNH prices rise beyond 6.7250, an upward trajectory towards 6.7850 can’t be ruled out.

USD/CNH: Daily chart

Trend: Limited downside expected