Home USD/CNH technical analysis: Nears 200-day MA for first since Feb. 19
FXStreet News

USD/CNH technical analysis: Nears 200-day MA for first since Feb. 19

  • USD/CNH gapped higher and almost tested the 200-day moving average (MA) earlier today.  
  • The renewed US-China trade tensions coupled with bullish technicals favor upside in USD/CNH.  

USD/CNH almost tested the 200-day moving average (MA) at 6.8262, as suggested by the bull flag breakout last week.

The long-term MA has come into play for the first time since Feb. 19. As of writing, the pair is trading at 6.80, representing a 0.97% gain on the day, having clocked a high of 6.8212 earlier today.

The currency pair clocked a high of 6.8218 earlier today and is currently trading at 6.80, representing a 0.97% gain on the day. The pullback from session highs could be associated with the overbought readings on the hourly and 4-hour chart RSIs.

Looking forward, the spot may revisit 6.76 (April 25 high) and fill the gap before breaking above the 200-day MA on re-escalation of US-China trade tensions.

Daily chart

Trend: Bullish

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.