USD/CNH Technical Analysis: Bullish RSI divergence seen on the hourly RSI

• The USD/CNH hourly chart shows a bullish relative strength index (RSI). As a result, the currency pair could revisit the 10-day moving average (MA) hurdle of 0.8623 before resuming the sell-off as called by the last week’s big bearish inverted hammer candle.
• It’s worth noting that a break below 6.8226 would invalidate the bullish RSI divergence and would open the doors to 6.7877 (23.6% Fib R of 6.2353/6.9584).

Hourly Chart

Spot Rate: 6.8347

Daily High: 6.8374

Daily Low: 6.8226

Trend: Intraday bullish

Resistance

R1: 6.8609 (5-day MA)

R2: 6.8623 (10-day MA)

R3: 6.9124 (Aug. 3 high)

Support

S1: 6.8056 (Aug. 8 low)

S2: 6.7877 (23.6% Fib R of 6.2353/6.9584)

S3: 6.7737 (July 31 low)