fxs_header_sponsor_anchor

News

USD/CNH Price Analysis: Bulls cheer fresh monthly high with eyes on 6.7860

  • USD/CNH extends one-week-old upward trajectory towards challenging late May’s swing high.
  • Yearly top in focus as MACD teases bulls, RSI hints at further upside.
  • Previous resistance line, weekly support trend line restrict short-term downside ahead of seven-week-old horizontal area.

USD/CNH remains on the front foot as it refreshes the monthly top around 6.7731, around 6.7635 by the press time of Monday’s Asian session.

In doing so, the offshore Chinese yuan (CNH) pair justifies Friday’s upside break of a one-month-old resistance line, now support around 6.7220.

Also keeping the USD/CNH bulls hopeful is the MACD lines suggesting a bull cross, as well as the firmer RSI (14).

That said, the quote stays on the way to the monthly horizontal resistance area surrounding 6.7840-60 before challenging the yearly top near 6.8384.

Should the USD/CNH prices refresh yearly top, the odds of witnessing a rally towards the 6.9000 psychological magnet can’t be ruled out.

Alternatively, pullback moves need to break the 6.7220 resistance-turned-support to recall the short-term sellers.

Following that, a weekly support line could probe the quote’s further downside around 6.6900.

It’s worth noting that a horizontal area comprising multiple lows marked since late April, surrounding 6.6100, appears a tough nut to crack for the USD/CNH bears afterward.

USD/CNH: Daily chart

Trend: Further upside expected

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.