• USD/CNH Price Analysis: Pokes immediate trend line resistance below 6.7000

Market news

8 July 2022

USD/CNH Price Analysis: Pokes immediate trend line resistance below 6.7000

  • USD/CNH consolidates the biggest daily loss in three weeks.
  • Impending bull cross on MACD, RSI rebound underpin recovery hopes.
  • 200-HMA adds to the upside filters, weekly support line challenges bears.

USD/CNH picks up bids to refresh intraday high around 6.6980 during Friday’s Asian session. In doing so, the offshore Chinese yuan (CNH) currency pair pokes a two-day-old resistance line while bouncing off the weekly support trend line.

Given the recent rebound in the RSI (14), as well as the impending bull cross of the MACD line, the USD/CNH prices are likely to extend the latest run-up towards crossing the 6.6985 immediate hurdle.

Even so, the 200-HMA level near 6.7025 will challenge the pair buyers before directing them to the weekly top surrounding 6.7270.

It’s worth noting that tops marked during late June, near 6.7345-50 could challenge the quote’s upside past 6.7270, a break of which will again highlight the 6.7855-60 resistance area comprising multiple highs marked since May 27.

Alternatively, a downside break of the immediate support line, near 6.6915, will need validation from the 6.6900 round figure to revisit the weekly low near 6.6800.

Following that, the late June bottom surrounding 6.6685 could test the USD/CNH bears before directing them to the previous monthly low near 6.6170.

USD/CNH: Hourly chart

Trend: Further upside expected

 

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