- Triangle formation limits near-term moves.
- RSI indicates less momentum.
Even after portraying a lower high formation since last two-weeks, the USD/CNY pair is less likely to turn bearish unless clearing a fortnight old ascending support-line. The quote presently takes the rounds near 6.9025 during early Monday.
While 23.6% Fibonacci retracement of the pair’s rise from May 15 and a downward sloping trend-line can limit immediate upside near 6.9090 and 6.9157, buyers can aim for 6.9224 during further advances.
In a case where bulls keep dominating trade sentiment beyond May month high, October 2018 tops surrounding 6.9770 and 7.0000 psychological magnet can become their targets.
14-bar relative strength index (RSI) offers no clear signal as it seesaws in the normal region.
Alternatively, a downside break of 6.8965 support-line may trigger the quote’s fresh selling in the direction to 61.8% Fibonacci retracement near 6.8868.
It should also be noted that the pair’s decline below 6.8868 can avail 6.8750 as an intermediate halt during the drop to revisit mid-May bottom near 6.8647.
USD/CNY hourly chart
Trend: Sideways to positive
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