USD/CNH Technical Analysis: Downside pressures build

• The USD/CNH hourly chart shows a rising channel breakdown and minor double top breakdown.
• The MACD has produced a bearish crossover and the relative strength index (RSI) is threatening to drop into bearish territory below 50.00.
• As a result, the pair could feel the pull of gravity and will likely drop below 6.90 in a day or two.

Hourly Chart

Spot Rate: 6.9146

Daily High: 6.9262

Daily Low: 6.9122

Trend: Bearish

Resistance

R1: 6.9161 (double bottom neckline)

R2: 6.9262 (Friday’s high)

R3: 6.9430 (Thursday’s high)

Support

S1: 6.90 (psychological support)

S2: 6.8668 (Oct. 11 low)

S3: 6.8241 (Sept. 21 low)