USD/CNH technical analysis: Above 200-day MA, offshore yuan drops to four-month low

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  • Yuan’s offshore exchange rate (CNH) hot four-month low soon before press time.
  • USD/CNH is trading above the 200-day moving average for the first time in over two months.

USD/CNH continues to gain altitude amid re-escalation of the US-China trade tensions, having witnessed a bullish flag breakout earlier this month

The currency pair is currently trading at 6.8282, having hit a high of 6.8334 earlier today – a level last seen on April 9. The pair is also trading above the key 200-day moving average (MA) for the first time since Feb. 19.

A close above the 200-day MA would only bolster the already bullish technical setup. That said, the momentum may slow, as the 14-day relative strength index (RSI) has moved above 70.00 for the first time in nearly 9 months.

Pullbacks, however, if any, could find bids around the ascending 10-day MA, currently at 6.7861

Daily chart

Trend: Bullish

 

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