- The USD/CNH pair created a bearish outside-day candle yesterday as the greenback fell on renewed hopes for US-China trade talks.
- A close today below yesterday’s low of 6.8269 would validate the bearish outside-day and open doors for a deeper pullback in the USD/CNY pair.
- The hourly chart shows a rising wedge breakdown, meaning the prospects of a close below 6.8269 are high.
- On the higher side, a move above 6.8891 (previous day’s high) will likely put the bulls back in the commanding position.
Daily Chart
Hourly Chart
Spot Rate:6.8380
Daily High: 6.8401
Daily Low: 6.8275
Trend: Bearish
R1: 6.8399 (200-hour moving average)
R2: 6.8721 (support as per the hourly chart)
R3: 6.8891 (yesterday’s high)
Support
S1: 6.8269 (yesterday’s low)
S2: 6.8114 (50-day moving average)
S3: 6.7813 (Aug. 27 low)