USD/CNH Price Analysis: This indicator favors range breakout

USD/CNH is trapped in a narrow range on the daily chart.
The MACD histogram suggests scope for a range breakout.

Omkar Godbole FXStreet Contributor

USD/CNH's daily chart MACD histogram, an indicator used to identify trend changes and trend strength, has crossed above zero, confirming a bullish reversal.

The indicator's bullish turn suggests the pair could soon breach the two-week-long trading range of 7.04 to 7.0974 to the higher side. The range breakout, if confirmed, would create room for a rally to 7.1548 (target as per the measured move method).

However, the 14-day relative strength index (RSI) is still hovering in bearish territory below 50.00. Also, the MACD histogram is based on moving averages (backward-looking indicators) and often lags prices and traps traders on the wrong side of the market.

The outlook would turn bearish if the range play ends with acceptance under 7.04. At press time, the pair is trading at 7.078, representing marginal losses on the day. The immediate bias would remain neutral as long as the pair stuck inside the trading range of 7.04 to 7.0974.

Daily chart

Trend: Neutral

Technical levels

USD/CNH

Overview
Today last price	7.078
Today Daily Change	-0.0034
Today Daily Change %	-0.05
Today daily open	7.0814

Trends
Daily SMA20	7.0844
Daily SMA50	7.1025
Daily SMA100	7.0689
Daily SMA200	7.0445

Levels
Previous Daily High	7.0894
Previous Daily Low	7.0754
Previous Weekly High	7.0974
Previous Weekly Low	7.0598
Previous Monthly High	7.1964
Previous Monthly Low	7.0774
Daily Fibonacci 38.2%	7.0841
Daily Fibonacci 61.8%	7.0808
Daily Pivot Point S1	7.0748
Daily Pivot Point S2	7.0681
Daily Pivot Point S3	7.0608
Daily Pivot Point R1	7.0888
Daily Pivot Point R2	7.0961
Daily Pivot Point R3	7.1028

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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