USD/CNH Price Analysis: Bears on alert below $6.4800, daily closing pivotal
- USD/CNH teases rising wedge bearish pattern’s confirmation, offered near intraday high.
- Failure to cross 200-DMA, downbeat Momentum line also favor sellers.
- Bulls need fresh high of the month to retake controls.
USD/CNH takes offers around $6.4770, down 0.14% intraday, amid early Thursday.
The Chinese yuan (CNH) bulls battle the key support line stretched from May-end while extending pullback from 200-DMA.
The pullback becomes crucial as the stated trend line forms a part of multi-day-old rising wedge bearish formation and daily closing below $6.4800, which will trigger the theoretical fall towards a fresh yearly low.
It’s worth noting that the downward-sloping Momentum line and failures to cross 200-DMA, not to forget fundamental challenges for the US dollar, back the USD/CNH bears.
During the anticipated south-run, the monthly bottom surrounding $6.4500 and early May’s low near $6.4040 could test the sellers ahead of the yearly trough of $6.3524.
On the contrary, a daily closing beyond $6.4800 could trigger a corrective bounce towards the 200-DMA level of $6.4980. However, any further upside will be challenged by the stated wedge’s resistance line near $6.5250.
Overall, USD/CNH stands near the key level but keeps bears hopeful.
USD/CNH: Daily chart
Trend: Further weakness expected