Bears can ignore latest rebound to 6.4400

  • USD/CNH edges higher around the intraday top, snaps five-day downtrend.
  • Three-week-old resistance line, 200-SMA challenge upside momentum.
  • Sellers await weekly support break for fresh entries.

USD/CNH remains on the front foot around 6.4400, up 0.07% intraday, after the China data dump backed the quote’s first positive daily performance in six during early Wednesday.

Read: China State Bureau: COVID-19 outbreaks, floods hit consumption in August

Even so, a downward sloping trend line from August 20 and a weaker Momentum line hint at the offshore Chinese currency (CNH) pair’s underlying weakness.

That said, a short-term horizontal trend line around 6.4330 holds the key for the USD/CNH sellers’ fresh entries.

Following that, an ascending support line from August 03, near 6.4285, as well as the monthly low close to 6.4240, will be in focus.

Alternatively, the stated resistance line near 6.4490 and 200-SMA level close to 6.4675 restrict the USD/CNH pair’s short-term recovery moves.

However, a clear run-up beyond 6.4675 enables the buyers to ai for the 6.5000 and then to the last month’s peak near 6.5100.

USD/CNH: Four-hour chart

Trend: Bearish

 

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