The USD/CNH pair (offshore yuan exchange rate) fell 0.36 percent on Feb. 12, invalidating the bullish view put forward by the falling wedge breakout, confirmed on Feb. 4.
As a result, a close above 6.8085 (Feb. 12 high) is needed to revive the bullish view. That looks likely as China’s PPI decelerated sharply in January, signaling growing pressure on the economy. So, a move above 6.8085 could yield a rally to 6.84-6.85. Validating that bullish case are the ascending 5- and 10-day moving averages (MAs),
On the downside, acceptance below the ascending (bullish) 200-day MA, currently at 6.7562, would weaken the bullish case.
Daily chart
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Trend: bullish above 6.8085
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