- The USD/CNH hourly chart shows a bearish price-relative strength index (RSI) divergence.
- The bull may have a breather before further upside unfold.
- China is increasingly favoring a weaker currency so as to help the economy absorb the shocks from US-China trade war.
Hourly chart
Spot Rate: 6.60
Daily High: 6.6160
Daily Low: 6.5759
Trend: Minor pullback likely
R1: 6.6321 (Dec. 12 high)
R2: 6.6524 (Nov. 20 high)
R3: 6.6626 (Nov. 10 high)
Support
S1: 6.5759 (session low)
S2: 6.5456 (5-day moving average)
S3: 6.4987 (10-day moving average)