USD/CNH Technical Analysis: Bullish case strengthens on falling wedge breakout

• The falling wedge breakout seen in the USD/CNH hourly chart indicates the pullback from Friday’s high of 6.9761 has likely ended at 6.9471 and the bulls have regained control.
• The bullish breakout on the hourly chart also validates the ascending (bullish) 5-day and 10-day exponential moving averages (EMAs).
• The pair could soon re-test Friday’s high of 6.9761 and may rose even further toward 7.00 in the next few days.

Hourly Chart

Spot Rate: 6.9624

Daily High: 6.9630

Daily Low: 6.9495

Trend: Bullish

Resistance

R1: 6.9761

R2: 6.9861 (December high)

R3: 7.00 (psychological hurdle)

Support

S1: 6.9556 (50-hour EMA)

S2: 6.9471 (Friday’s low)

S3: 6.9430 (200-hour EMA)