USD/CNH’s weekly chart indicator shows CNH’s rally is overdone. The pair’s daily chart also favors a corrective bounce. The USD/CNH pair may be in for consolidation or minor bounce, as the offshore yuan or CNH looks overbought for the first time in over two years. USD/CNH’s 14-week relative strength index (RSI) has declined below 30, a sign of oversold conditions. A sub-30 reading was last seen in March 2018. The daily chart is also reporting oversold conditions for the third straight week. An oversold reading on the RSI implies the sell-off is overdone. However, the oversold reading needs validation from signs of downtrend exhaustion on the price chart. The pair created an inverted hammer last Thursday, indicating seller fatigue and potential for reversal higher. All-in-all, the odds appear stacked in favor of a corrective bounce. The immediate resistance is seen at 6.8135 (Sept. 1 low) followed by 6.9048 (March 9 low). Meanwhile, support is seen at 6.7423 (Sept. 16 low). Weekly chart Daily chart Trend: Oversold Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next China injects 210 billion yuan liquidity into market – Xinhua News Agency FX Street 2 years USD/CNH's weekly chart indicator shows CNH's rally is overdone. The pair's daily chart also favors a corrective bounce. The USD/CNH pair may be in for consolidation or minor bounce, as the offshore yuan or CNH looks overbought for the first time in over two years. USD/CNH's 14-week relative strength index (RSI) has declined below 30, a sign of oversold conditions. A sub-30 reading was last seen in March 2018. The daily chart is also reporting oversold conditions for the third straight week. An oversold reading on the RSI implies the sell-off is overdone. However, the oversold reading needs validation from… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
