- USD/CNH’s weekly chart shows seller fatigue at multi-year lows.
- The descending or bearish 5-week SMA restricts upside.
USD/CNH looks oversold, but so far, a notable corrective bounce has remained elusive.
The currency pair is trading near 6.4680 at press time, having failed to take out the 5-week Simple Moving Average (SMA) 6.4889 on Monday. The pair printed a 31-month low of 6.4119 last week.
The long-tail attached to the previous weekly candle indicates seller fatigue and validates the below-30 or oversold reading on the Relative Strength Index.
Also, the weekly chart MACD histogram is charting higher lows below the zero line in a sign of weakening of the bearish momentum.
As such, the immediate bearish bias stands neutralized. A close above the lower high of 6.5530 (Dec. 21 high) would signal a short-term bearish-to-bullish trend change. Meanwhile, the last week’s low of 6.4119 is the level to beat for the sellers.
Weekly chart
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Trend: Neutral
Technical levels
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