- USD/CNH extends weekly run-up to the key upside hurdle.
- 100-SMA adds strength to the resistance, Momentum line favor bulls.
- Sellers will wait for a clear break of immediate support line for fresh entries.
USD/CNH picks up bids to 6.4015, up 0.05% intraday, while teasing the one-week top during early Friday.
The off-shore Chinese currency pair battles an important resistance line from early May amid an upbeat Momentum indicator. Also acting as the upside barrier is the 100-SMA.
Hence, USD/CNH bulls should wait for a clear upside break of 6.4090, also wait for the run-up beyond 6.4100, before planning a return.
During the quote’s sustained rise above 6.4100, May 18 low of 6.4180 and the late May tops near 6.4415-20 will be in the spotlight.
Meanwhile, pullback moves will be considered non-harmful until breaking a one-week-old support line, near 1.3625.
Following that, the 6.3750 and the recent multi-month low near 6.3525 should return to the charts.
Overall, USD/CNH is up for the much-awaited corrective pullback but the bulls need to pass an exam.
USD/CNH four-hour chart
Trend: Further recovery expected
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