USD/CNH Price Analysis: RSI probes further downside around 6.40 key support
- USD/CNH bounces off yearly bottom amid nearly oversold RSI.
- 10-day SMA, two-month-old resistance line guard corrective pullback.
USD/CNH extends bounce off three-month low, around 6.4100 during early Tuesday.
Even so, RSI conditions suggest a corrective pullback towards a last Tuesday’s low near 6.4180. Though, any further upside will be challenged by a 10-day SMA level of 6.4340 and a downward sloping trend line resistance line from early April, around 6.4380.
In a case where USD/CNH bulls manage to conquer the 6.4380 hurdle, also cross the 6.4400 round figure, the monthly horizontal resistance near 6.4615 will be in the spotlight.
On the contrary, a daily closing below the 6.4000 threshold becomes necessary for the bears to visit the early 2018 levels surrounding 6.3700.
Overall, USD/CNH remains bearish but corrective pullback can’t be ruled out.
USD/CNH daily chart
Trend: Pullback expected
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May 24, 2021 at 07:01PM