USD/CNH Technical Analysis: Bullish divergence of RSI seen on 1H chart, corrective bounce ahead

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USD/CNH’s previous hourly candle closed on a positive note, confirming a higher low or a bullish divergence of the relative strength index (RSI) on the hourly chart. 

The RSI on the 4-hour chart is also reporting oversold conditions, while the long-tail attached to the current 4-hour candle is signaling bearish exhaustion. 

The pair, therefore, could rise above 6.70. The bullish case would weaken if the spot finds acceptance below 6.6748 (Feb. 27 low). 

Daily chart

Trend: Bounce likely

 

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