- USD/CNH rose to 100-hour MA, looks overbought as per the 14-day relative strength index (RSI).
- CNH is under pressure on fears of US-China trade war.
The USD/CNH pair picked up a bid in Asia on fears of a full-fledged trade war between the US and China.
The US is set to impose tariffs on $34 billion of Chinese imports on July 6 and Beijing has vowed to respond in kind but has made it clear that it will “absolutely not” fire the first shot in a trade war.
So, it all depends on what Trump administration does on Friday. Until then, the CNY, AUD and other risky assets will likely remain under pressure.
As of writing, the USD/CNH is trading at 6.6451, having tested the 100-hour moving average (MA) of 6.6548 earlier today. The CNH (offshore Yuan) is looking extremely overbought, according to 14-day RSI.
USD/CNH Technical Levels
Resistance: 6.6575 (50-hour MA), 6.6952 (July 2 high), 6.7329 (July 3 high).
Support: 6.6332 (support as per the hourly chart), 6.6197 (200-hour MA), 6.6146 (10-day MA).
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