USD/CNH Technical Analysis: 6.8955 is the level to beat for the bulls

• The USD/CNH pair rose above the 200-hour moving average (MA)   yesterday, signaling the pullback from the Aug. 15 high of 6.9584 has ended at 0.68201 and the bull run has resumed.
• The 50-hour and 100-hour MAs have regained bullish bias. Further, the pair defended the 200-hour MA a few minutes ago, reinforcing the view that the yuan (CNH) downtrend has resumed.
• What bulls need now is a break above 6.8955. That would open the doors to 0.6956 (61.8% Fib R of 6.9584/6.8201).
• The bullish view would be aborted if the pair finds acceptance below the 10-day MA support of 6.8704. It would also open the doors to completion of the head-and-shoulders pattern with the neckline support of 6.8229.

Hourly chart

Daily chart

Spot Rate: 6.8830

Daily High: 6.8955

Daily Low: 6.8682

Trend: Bullis above 6.8955

Resistance

R1: 6.8955 (daily high)

R2: 6.9056 (61.8% Fib)

R3: 6.9124 (Aug. 3 high)

Support

S1: 6.8703 (10-day MA)

S2: 6.8564 (5-day MA)

S3: 6.8201 (Aug. 22 low)