- USD/CNH pierces 50% Fibonacci retracement.
- A one-week-old rising trend line restricts near-term declines.
While following a week-long ascending trend line, USD/CNH rises to 7.0065 during early Monday. In doing so, the pair crosses 50% Fibonacci retracement of December 03-12 declines.
Even so, a confluence of 200-bar EMA and 61.8% Fibonacci retracement, near 7.0248/50, can challenge buyers targeting December 12 top of 7.0416.
Should prices manage to stay strong beyond 7.0416, 7.0655 and the monthly top close to 7.0880 will be on the bull’s radar.
On the flip side, pair’s dip beneath the immediate support line, at 6.9945 now, will drag the quote to 6.9580.
Additionally, the monthly bottom close to 6.9225 and 6.9000 round figure will lure bears after 6.9580.
USD/CNH four-hour chart
Trend: Recovery expected
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