USD/CNH Technical Analysis: Bear flag breakdown seen in the 15-minute chart

• The bear flag breakdown seen in the hourly chart of the USD/CNH pair indicates the oversold offshore yuan exchange rate (CNH) is likely to regain some poise.
• The bear flag breakdown adds credence to Friday’s inverted bearish hammer and the large bearish divergence of the 14-day relative strength index (RSI).

15-minute chart

Spot Rate: 6.8290

Daily High: 6.8551

Daily Low: 6.8237

Trend: Bearish

Resistance

R1: 6.8560 (July 27 high)

R2: 6.9124 (Friday’s high)

R3: 7.00 (psychological level)

Support

S1: 6.8209 (ascending 10-day moving average)

S2: 6.7738 (July 31 low)

S3: 6.7380 (July 26 low)