USD/CNH Price Analysis: Reverses from two-year high towards 6.8500 but bears are far

USD/CNH takes offers to refresh intraday low around the highest levels since August 2020.
Sustained trading beyond May’s peak, bullish MACD signals favor buyers.
Ascending resistance line from April 2021 lures buyers, two-month-old previous trend line resistance adds to downside filters.

Anil Panchal FXStreet

USD/CNH stands on slippery grounds near 6.8565 as it consolidates the recent gains around the highest levels in two years during Thursday’s Asian session.

Even so, the offshore Chinese yuan (CNH) pair remains well above the previously key resistances, which in turn joins the bullish MACD signals to keep buyers hopeful.

That said, May 2022 high near 6.8385 appears the immediate support for the USD/CNH bears to watch. It’s worth noting that a two-week-old support line near 6.8340 could also restrict the pair’s short-term downside.

In a case where the quote drops below 6.8340, it can approach the resistance-turned-support line from late May, close to the 6.8000 psychological magnet.

Meanwhile, recovery moves may initially aim for the latest peak of 6.8876 before targeting the 6.9000 round figure.

Following that, an upward sloping resistance line from April 2021, close to 6.9030 at the latest, appears the important hurdle for the USD/CNH bulls to cross.

It should be noted that the pair’s successful run-up beyond 6.9030 could help it aim for the late 2018 peak surrounding 6.9800.

USD/CNH: Daily chart

Trend: Bullish

Additional important levels

Overview
Today last price	6.854
Today Daily Change	-0.0226
Today Daily Change %	-0.33%
Today daily open	6.8766

Trends
Daily SMA20	6.7842
Daily SMA50	6.7467
Daily SMA100	6.6882
Daily SMA200	6.5253

Levels
Previous Daily High	6.8876
Previous Daily Low	6.8522
Previous Weekly High	6.8446
Previous Weekly Low	6.7358
Previous Monthly High	6.792
Previous Monthly Low	6.6804
Daily Fibonacci 38.2%	6.8741
Daily Fibonacci 61.8%	6.8658
Daily Pivot Point S1	6.8567
Daily Pivot Point S2	6.8368
Daily Pivot Point S3	6.8213
Daily Pivot Point R1	6.8921
Daily Pivot Point R2	6.9076
Daily Pivot Point R3	6.9275

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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