USD/CNH Price Analysis: Retreats inside weekly triangle below 6.6700
- USD/CNH reverses from intraday high, fades bounce off three-week low.
- 50-HMA probes recovery inside one-week-old symmetrical triangle.
- 6.6560 support confluence limits immediate downside, 100-HMA adds to the upside filters.
USD/CNH takes a U-turn from the daily top surrounding 6.6720 as 50-HMA tests the recovery moves inside a weekly triangle. Even so, the offshore Chinese yuan (CNH) pair snaps a four-day downtrend while bouncing off a three-week low, up 0.14% intraday near 6.6675 during Wednesday’s Asian session.
Given the recent pick-up in the RSI (14), the USD/CNH rebound may extend towards breaking the aforementioned triangle’s resistance, around 6.6760.
However, the 100-HMA and 50% Fibonacci retracement (Fibo.) of May 04-13, respectively around 6.7000 and 6.7250, will be strong resistance for the pair to cross afterward.
On the contrary, a convergence of the stated triangle’s support line and 78.6% Fibo. highlights 6.6560 as the short-term key support.
Should USD/CNH bears manage to conquer the 6.6560, the odds of witnessing the pair’s slump towards the monthly low of 6.6116 can’t be ruled out.
USD/CNH: Hourly chart
Trend: Further recovery expected
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